Rate Provision of Income Tax Article 21 Will be Amended
Thursday, 29 December 2022
JAKARTA. The government plans to change the provisions regarding Withholding Rates of Income Tax Article (ITA) 21 for works, services and activities.The plan is contained in the Draft Government Regulation (RPP).
Quoting Kontan.co.id, there are four main policies that will be contained in the draft regulation. First, related to the withholding of ITA 21 rate.
Second, ITA 2 regulation on income sourced from the State Revenue and Expenditure Budget (APBN) and Regional Revenue and Expenditure Budge (APBD).
Third, regarding the implementation and application of the effective withholding rate of ITA 21. Fourth, regarding the repeal of PP Number 80 of 2010 concerning withholding rates.
Reducing Cost of Compliance
Meanwhile, the Directorate General of Taxes (DGT) revealed that this plan was prepared to facilitate tax administration. Especially for employers who withhold ITA 21 on their employees.
Thus, this can reduce tax administration costs or compliance costs both for the taxpayer and for the DGT.
In addition, the government hopes that this policy can encourage more sustainable tax compliance. So that in the end state revenue can continue to increase.
