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Everything You Need to Know about Tax Article PPh 15 in Indonesia

​There are many types of income that are regulated in the Income Tax Law or Income Tax. Not only regulate the types of income you receive, but this Act also regulates many other things. Starting from the tax object, tax rate, calculation mechanism, payment, including the stipulated deadline.

The regulations also vary, depending on the type of income and who the taxpayer is. Individual Taxpayers (WPOP) will generally have several differences in tax application from Corporate Taxpayers (WPB). You can also see the difference in terms of the tax rate imposed to the difference in the payment period or deadline.

What is Tax Article PPh 15?

Before going into further explanations regarding Article 15 of the Income Tax Law, it's a good idea to first know the definition of this tax regulation. Basically, PPh Article 15 talks about the types of income taxes taken from taxpayers, especially those who are involved in many industrial Activities Such as Domestic flight charters, Domestic shipping, Overseas shipping or flights, and Foreign Company Trade Representative Office (Liaison Office).

Apart from these industries, there are other fields that are also subject to Article 15 of Income Tax. For example, investment companies engaged in build-operate-transfer (build-to-handover). These companies are usually involved in infrastructure projects. In addition, there are also oil drilling companies that must be subject to Article 15 Income Tax.

Why should the company know PPh 15?

Every company carrying Out the activities mentioned above shall make a tax payment on any subsequent 10th or 15th Month (Depending type of Business Industry) and shall report the payments to the Tax Office in every 20th of the following month.  Shipping companies must pay no later than every month on the 10th. Payment after the tax invoice has been made.

Domestic shipping companies, foreign shipping companies ,and/or airlines must pay (taken by the tax collector) no later than the 10th. Payment is made in the same month after the tax invoice is made. If the taxpayer pays directly, the payment is made no later than the 15th of the same month after the invoice has been made.

For overseas Taxpayers with a representative office in Indonesia without a bilateral agreement under the Indonesian Tax Agreement, taxes must be paid in the same month after receiving income, no later than the 15th.

The party to the build-to-handover agreement (BOT) is required to pay this tax in the month in which the BOT period has been completed. Payment no later than the 15th of the month.

How much is the tax rate of PPh 15?

 The tax rates imposed in PPh Article 15 are also different. It varies depending on the type of business industry. Here's the description.

  1.  Shipping companies with a net profit of 6% of gross turnover, the income tax charged is 1.8% of gross turnover.

  2. Domestic shipping companies with a net profit of 4% of gross turnover, the income tax charged is 1.2% of gross turnover.

  3. Foreign shipping companies, multinationals, and/or airlines with a net profit of 6% of gross turnover, the income tax charged is 2.64% of gross turnover.

  4. Foreign companies with a representative office in Indonesia without a bilateral agreement under P3B with a net profit of 1% of the Gross Export Value, the settlement of PPh imposed is 0.44% of the Gross Export Value.

  5. The parties to the build-to-handover agreement are subject to income tax of 5% of the gross highest value of the market value with the Selling Value of the Tax Object (NJOP).

How do the payment for PPh 15?

 The charterer or company must deposit Article 15 of Income Tax to the bank or perception post by submitting the Online tax payment voucher or billing code through a bank teller or perception post, Automated Teller Machine (ATM), Internet banking, mobile banking, EDC, or other means.

 Then, we will get a Proof of State Revenue sheet as proof of payment containing the data on the payment made. The data listed includes the identity of the payer, the type of tax, the tax period, the tax year, and the State Revenue Registration Number.

PPh 15 Income Tax Objects

Finally, the object of Income Tax Article 15. In accordance with the regulations that have been regulated, all replacement value or compensation in the form of money obtained by the Taxpayer is based on a charter agreement for the transportation of people and/or goods that have been loaded from one port to another existing port. in Indonesia and/or from Indonesian ports to overseas ports. This is the object of Article 15 Income Tax.

Another thing that needs to be considered is that taxpayers, especially domestic airlines, refer to taxpayers of airlines located in Indonesia. This Taxpayer also earns income based on the charter agreement above. This charter agreement includes a space charter for people or goods.

How JAC Outsourcing Can Assist

JAC Outsourcing is a specialist consulting services provider delivering business solutions in Indonesia to a broad range of domestic and international clients. JAC Outsourcing offers comprehensive a range of accounting and tax reporting that helps your operational load. Our Accounting and Tax services grant your company the freedom to focus on your core business activities and growth, while we take care of the time-consuming details. JAC Indonesia, a one-stop solution for your business.

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