Corporate Taxpayers are taxpayers consisting of a group of people and/or capital. Not only those who carry out business, corporate taxpayers can be entities that do not carry out business. There are several forms of Corporate Taxpayers, namely Limited Liability Companies (PT), limited partnership (CV), State-Owned Enterprises (BUMN) or Regional-Owned Enterprises (BUMD), cooperatives, foundations, (such as associations, unions, gatherings). from parties who have the same interests).

In general, Income Tax (PPh) rates for Corporate Taxpayers are regulated in Article 17 paragraph (1) letter b of the Income Tax Law. In accordance with these provisions, the corporate income tax rate is 22% per year. This rate is close to a quarter of income, isn't this burdensome for corporate taxpayers, especially for small and medium businesses?

What corporate taxpayers must fundamentally understand is that the amount of PPh paid is not calculated by multiplying the 22% rate by gross income. This can be burdensome as the 22% rate is above the typical profit margins in some industries. Therefore, it is important for corporate taxpayers to know how to calculate corporate income tax correctly and in accordance with the regulations in order to minimize sanctions.

The process of calculating the amount of corporate income tax is closely related to the company's gross income. There are different "formulas" and "rates" when calculating taxes for companies with high gross income and low gross income (even minus). This can be summarized in the following terms:

1. Companies with a gross income of more than IDR 50 billion a year are subject to a 22% non-final rate;
2. Companies with a gross income of IDR 4.8 billion to IDR 50 billion a year are subject to a 22% non-final rate with a 50% rate reduction facility;
3. Companies with a gross income under IDR 4.8 billion a year are subject to a final rate of 0.5%; And
4. Companies that lose money do not need to pay corporate income tax.

Calculating Corporate Income Tax with the Final MSMEs Rate

The 0.5% rate is final (point 3) often referred to as final MSMEs PPh. The legal basis for the imposition of final PPh on MSMEs for corporate taxpayers is regulated in Article 57 paragraph (1) letter b Government Regulation Number 55 of 2022 (PP 55/2022). How to calculate Corporate Income Tax using the final MSMEs rate is very easy, Corporate Taxpayers only need to multiply the 0.5% rate by the monthly gross income.

For example, PT ABC is a company that was only founded in mid-2022. PT ABC's total gross income for 2023 is IDR 4 billion. If PT ABC's income is IDR 300 million per month from January to November and its gross income increases to IDR 700 million in December, calculate the amount of Corporate Income Tax that PT ABC must pay per month!

The calculation of Corporate Income Tax for PT ABC for the 2023 Fiscal Year is as follows:

• January to November: 0.5% x IDR 300,000,000 = IDR 1,500,000
• December: 0.5% x IDR 700,000,000 = IDR 3,500,000

Thus, the total corporate income tax paid by PT ABC during 2023 is IDR 20,000,000 which is calculated from (11 x IDR 1,500,000) + IDR 3,500,000. This total is equal to the result of 0.5% x IDR 4,000,000,000.

The final provisions for Corporate Income Tax with the final MSMEs rates are only valid for 3-4 years. A period of 4 years is given to corporate taxpayers in the form of cooperatives, CVs, firms, joint BUMD/BUMDes, or individual companies. Meanwhile, a period of 3 years is given to corporate taxpayers in the form of PT.

The period for using the final MSMEs rate is stated in the Statement Letter (Suket) PP 55/2022. After the 3-4 year period ends, corporate taxpayers must be ready to calculate income tax using the normal rate of 22%. If the Corporate Taxpayer has used or chosen to use the 22% rate, then the final rate of 0.5% can no longer be used.

Calculating Corporate Income Tax at Normal Rate

The normal corporate income tax rate is the rate of Article 17 of the Income Tax Law, namely 22%. The way to calculate Corporate Income Tax at the normal rate tends to be more complicated than the final MSMEs rate. Corporate taxpayers must have neat bookkeeping and a better understanding of tax provisions.

Calculating Corporate Income Tax at the normal rate is done by multiplying the rate and taxable income. What is taxable income? Taxable income is gross income or gross income minus expenses that are allowed in tax provisions.

Tax costs are regulated in Articles 6 and 9 of the Income Tax Law. These provisions have slight differences with generally accepted accounting standards. Therefore, corporate taxpayers need to make fiscal corrections to determine the amount of taxable income used as the basis for calculating corporate income tax.

As written in points 1 and 2, the calculation of Corporate Income Tax at normal rate is further divided depending on the size of gross income or gross income. For companies with a gross income of more than IDR 50 billion, corporate income tax is calculated directly by multiplying the 22% rate and taxable income.

For example, in 2023, PT DEF had gross income of IDR 55 billion and a net profit of IDR 5 billion. If PT DEF's taxable income after fiscal reconciliation is IDR 4 billion, then PT DEF's Corporate Income Tax for Fiscal Year 2023 is calculated as follows: 22% x IDR 4,000,000,000 = IDR 880,000,000

Furthermore, for companies that have a gross income of IDR 4.8 billion to IDR 50 billion, Corporate Income Tax is calculated by adding the following two formulas:

1. 50% x 22% x (Rp. 4,800,000,000 : gross income x taxable income)
2. 22% x (taxable income - (Rp. 4,800,000,000 : gross income x taxable income))

For example, in 2023, PT GHI had a gross income of IDR 40 billion and a net profit of IDR 5 billion. If PT GHI's taxable income after fiscal reconciliation is IDR 4 billion, calculate PT GHI's Corporate Income Tax for Fiscal Year 2023!

PT GHI's corporate income tax calculation for the 2023 fiscal year is as follows:

1. 50% x 22% x (IDR 4,800,000,000 : IDR 40,000,000,000 x IDR 4,000,000,000) = IDR 52,800,000
2. 22% x (Rp. 4,000,000,000 - (Rp. 4,800,000,000 : Rp. 40,000,000,000 x Rp. 4,000,000,000)) = Rp. 774,400,000

PT GHI's total corporate income tax for fiscal year 2023 is IDR 827,200,000

final-income-tax-rate , income-tax , msme-tax