ID :
12506
Mon, 07/14/2008 - 16:16
Auther :
Shortlink :
https://www.oananews.org//node/12506
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INCOME TAX ON SMALL, MEDIUM BUSINESSES SLASHED BY 50 PCT
Jakarta, July 14 (ANTARA) - The House of Representatives (DPR) and the government have agreed to reduce income tax tariff by 50 percent of normal tariffs for small and medium micro businesses which have legal entities.
The reduced income tax tariff was given to taxpayers with a business turnover of Rp4.8 billion to Rp50 billion per annum, Drajat Wibowo, member of the House's working committee on income tax bill, said at the weekend.
Citing an example, he said, if a resident taxpayer had a business turnover of Rp5 billion and posted a net profit of Rp500 million, his/her income totaling Rp480 million would be subject to a 14 percent income tax tariff.
Meanwhile, the remaining Rp20 million would be subject to a 28 percent normal tariff, he said.
If the small and medium macro entrepreneurs had no legal entities, they would be treated as individual taxpayers and subject to progressive tariff accordingly, he said.
Under the new agreement, the bigger the business turnover of small and medium macro entrepreneurs the smaller the proportion of incentives or facilities to income tax without incentives would be, he said.
He further said the House and the government also agreed to reduce income tax tariff by 5 percent of normal tariffs for publicly-listed companies which sell at least 48 percent of their shares in the Indonesia stock exchange.
The reduced income tax tariff was given to taxpayers with a business turnover of Rp4.8 billion to Rp50 billion per annum, Drajat Wibowo, member of the House's working committee on income tax bill, said at the weekend.
Citing an example, he said, if a resident taxpayer had a business turnover of Rp5 billion and posted a net profit of Rp500 million, his/her income totaling Rp480 million would be subject to a 14 percent income tax tariff.
Meanwhile, the remaining Rp20 million would be subject to a 28 percent normal tariff, he said.
If the small and medium macro entrepreneurs had no legal entities, they would be treated as individual taxpayers and subject to progressive tariff accordingly, he said.
Under the new agreement, the bigger the business turnover of small and medium macro entrepreneurs the smaller the proportion of incentives or facilities to income tax without incentives would be, he said.
He further said the House and the government also agreed to reduce income tax tariff by 5 percent of normal tariffs for publicly-listed companies which sell at least 48 percent of their shares in the Indonesia stock exchange.
