Implementation of Tax Planning to Minimize Income Tax Article 21

This study aims to determine the application of tax planning carried out to minimize Income Tax Article 21 in the Plantation Pension Fund. This research method uses a type of qualitative research using primary data. The data collection techniques used are interview techniques and documentation. The writing method used is the method of collecting, compiling the data obtained for further interpretation and analysis to provide complete information for problem solving. The results of this study indicate that the Dapenbun Representative in planning its income tax applies the method of imposing Income Tax Article 21 on all employee benefits including tax benefits and is calculated using the gross up method, namely adding tax benefits as employee income and borne by the company. The components of income that are exempted are only Pension Contributions and BPJS Employment participant expenses. While Income Tax Article 21 Retirees are calculated by the method method and borne by the pension participants themselves. Fulfill all tax provisions starting from calculation, withholding, depositing and reporting to avoid fines. Apply a 5% tax layer for staff and a maximum of 15% for coordinators for monthly taxes and at the end of the new year apply to the correct layer to avoid tax overpayments. To minimize income tax article 21 some allowances that are usually given in cash are given in kind, for example allowances for official clothing, medical treatment and recreation. Overall, the efforts made by Dapenbun Representatives to hit all employee benefits with Income Tax Article 21 is to reduce corporate tax where the corporate tax rate is greater than Income Tax Article 21.

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Publication Details

Journal
Advances in Taxation Research
Published
2024-08-30
DOI
https://doi.org/10.60079/atr.v2i3.204
Primary Topic
Taxation and Compliance Studies
Type
article
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article

Implementation of Tax Planning to Minimize Income Tax Article 21

Andika Pramukti, Rosmawati Rosmawati, Dewi Sabrina
Advances in Taxation Research
Taxation and Compliance Studies
article

Implementation of Tax Planning to Minimize Income Tax Article 21

Andika Pramukti, Rosmawati Rosmawati, Dewi Sabrina
article en

Abstract

This study aims to determine the application of tax planning carried out to minimize Income Tax Article 21 in the Plantation Pension Fund. This research method uses a type of qualitative research using primary data. The data collection techniques used are interview techniques and documentation. The writing method used is the method of collecting, compiling the data obtained for further interpretation and analysis to provide complete information for problem solving. The results of this study indicate that the Dapenbun Representative in planning its income tax applies the method of imposing Income Tax Article 21 on all employee benefits including tax benefits and is calculated using the gross up method, namely adding tax benefits as employee income and borne by the company. The components of income that are exempted are only Pension Contributions and BPJS Employment participant expenses. While Income Tax Article 21 Retirees are calculated by the method method and borne by the pension participants themselves. Fulfill all tax provisions starting from calculation, withholding, depositing and reporting to avoid fines. Apply a 5% tax layer for staff and a maximum of 15% for coordinators for monthly taxes and at the end of the new year apply to the correct layer to avoid tax overpayments. To minimize income tax article 21 some allowances that are usually given in cash are given in kind, for example allowances for official clothing, medical treatment and recreation. Overall, the efforts made by Dapenbun Representatives to hit all employee benefits with Income Tax Article 21 is to reduce corporate tax where the corporate tax rate is greater than Income Tax Article 21.

Advances in Taxation ResearchVol. 2(3)
Universitas Muslim Indonesia (ID)
Openalex Percentile: Top 82%
Taxation and Compliance Studies
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Implementation of Tax Planning to Minimize Income Tax Article 21 — Andika Pramukti, Rosmawati Rosmawati, et al. · Advances in Taxation Research (2024) | TGRS Research Map | TGRS