Implementation of Tax Planning using the Gross Up Method in Income Tax Calculation (PPh 21) in the Public Company of Duasduara Drinking Water Region, Bitung City

The gross up method is one of the approaches in calculating Article 21 Income Tax (PPh) used by employers. In this method, the taxes that are borne by the employee are borne by the company through the provision of tax allowances, where the amount of the allowance is equivalent to the amount of Income Tax Article 21 owed by each employee. This study is to determine the application of tax planning using the gross up method. This type of research is qualitative descriptive research. Data were obtained using documentation and interview methods. The results of the study show that the gross up method can increase the amount of gross income incurred by the company quite largely, namely Rp. 1,093,449,391, but tax allowances worth Rp. 20,011,136 provided by the company can be charged as deductible expenses, so that there is no need to make a positive fiscal correction and there are savings for the company in corporate income tax which is Rp. 4,402,450.