What are 3 types of tax benefits?
A tax benefit comes in different forms, such as a deduction, exclusion or credit. The amount of tax you can save also depends on the type of tax benefit you claim because they each offer a different form of savings.
Can tax be paid in kind?
Tax in kind or tax-in-kind usually refers to any taxation that is paid in kind, that is with goods or services rather than money, including: a tax on agricultural produce imposed by the Confederate States of America in 1863.
Are allowances taxable in Indonesia?
Employment income in Indonesia is subject to tax, regardless of where the income is paid. In addition to salary, taxable employment income includes bonuses, commissions, overseas allowances, and fixed allowances for education, housing, and medical care.
Is Indonesia a tax free country?
In general, a corporate income tax rate of 25 percent applies in Indonesia. However, there are several exemptions: In 2013, Indonesia’s Finance Ministry issued a regulation that set a one percent income tax tariff on individual and institutional taxpayers with an annual gross turnover below IDR 4.8 billion (approx.
What are different types of taxes?
Types of Taxes
- Consumption Tax. A consumption tax is a tax on the money people spend, not the money people earn.
- Progressive Tax. This is a tax that is higher for taxpayers with more money.
- Regressive Tax.
- Proportional Tax.
- VAT or Ad Valorem Tax.
- Property Tax.
- Capital Gains Taxes.
- Inheritance/Estate Taxes.
How does payment in-kind work?
Payment-in-kind (PIK) is the use of a good or service as payment instead of cash. Payment-in-kind also refers to a financial instrument that pays interest or dividends to investors of bonds, notes, or preferred stock with additional securities or equity instead of cash.
What is kind tax?
Benefit-in-kind (or BIK) is a tax on employees who receive benefits or perks on top of their salary. If you have a company car for private use, you will have to pay a BIK contribution, or company car tax.
How much is income tax in Indonesia?
Individual tax rates
|Taxable income (IDR*)
|Tax rate (%)
|Up to IDR 60 million
|Above IDR 60 million to IDR 250 million
|Above IDR 250 million to IDR 500 million
|Above IDR 500 million to IDR 5 billion
What is income tax in Indonesia?
Companies in Indonesia are taxed at a rate of 25%, for both domestic and international sourced income. Resident Indonesian companies are required to withhold tax at a rate of 20% from payments to foreign companies.
How do taxes work in Indonesia?
Do foreigners pay taxes in Indonesia?
Non-residents are taxed on income from Indonesia only, at a final flat rate of 20 percent. The obligation to withhold, remit, and report tax on cash compensation paid in connection with employment rests with the local employing entity.
What are the taxes like in Indonesia?
Just like many countries, Indonesia operates a self-assessed taxation system that is divided into state and local taxes. Included in state taxes are income tax (corporate, individual, withholding), VAT (Value Added Tax), stamp duty and customs tax.
How is employment income treated in Indonesia?
Employment income is generally treated as Indonesian-sourced compensation where the remuneration is paid by, or at the cost of, the Indonesian entity.
What is the tax surcharge on residence income in Indonesia?
Resident individual taxpayers without a tax ID number/NPWP are subject to a surcharge of 20% in addition to the standard Article 21 Income Tax rates. Employment income in Indonesia is subject to tax, regardless of where the income is paid.
Are in-kind benefits taxable as income?
In-kind benefits paid for by the employer, such as medical expenses, company-provided cars and housing, home leave etc., are not, in most cases, taxable as income to the employee. However, it should be noted that payments of these benefits are not tax deductible by the employer.