Commodity Prices Decline, Corporations Apply for Discount on Income Tax Article 25

JAKARTA. Due to the decline in commodity prices, many companies have requested a discount on Income Tax Article Article (ITA) 25 installments.

Income Tax Article 25 is a tax installment paid by the company every month. To then be accumulated at the end of the year and then compared with the value of Corporate Income Tax payable.

According to the Directorate General of Taxes (DGT), as quoted from Kontan.co.id, the decline in commodity prices has made companies calculate the profit target to be received in 2023.

If the company's profit expectations are lower, then the value of the tax they are able to install is also not as big as before. Therefore, the DGT will anticipate this condition.

For information, until the end of July 2023 the amount of corporate income tax collected rose 24.2% or lower than the corporate income tax revenue in the same period in 2022, which rose 132.1%.

Meanwhile, overall tax revenue until 30 July 2023 was recorded at 1,109.10 trillion. When compared to the realization, the contribution of corporate income tax until July 2023 was 26%. (ASP/KEN)