Insight

PPh Article 4 paragraph 2 is a type of tax whose deductions are final. This income tax can be imposed on individual taxpayers and business entities, with varying rates according to the tax object.

PPh Article 4 paragraph 2 (Income Tax Article 4 paragraph 2) or also called final PPh is a tax imposed on corporate taxpayers and individual taxpayers for several types of income they earn and the tax withholding is final.

Article 4 Paragraph 2 PPh rates are different for each type of income. For example, for Micro, Small and Medium Enterprises (MSMEs), entrepreneurs or online businesses with business turnover not exceeding IDR 4.8 billion in 1 tax year, the tax rate is 0.5% of the total sales turnover (gross turnover) in 1 month.

So, for taxpayers who want to pay SME taxes without having to queue at the bank, just use the online tax payment feature in the OnlinePajak application.

Understanding PPh Article 4 Paragraph 2/Final Income Tax
PPh Article 4 Paragraph 2/Final PPh is income tax on certain types of income which is final and cannot be credited with the income tax payable.

The term final here means that the tax is deducted only once in a tax period taking into account convenience, simplicity, certainty, timely tax imposition and other considerations.

Object of Income Tax Article 4 Paragraph 2 (Income Tax Article 4 Paragraph 2)
The object of PPh Article 4 Paragraph 2 (Income Tax Article 4 Paragraph 2) is imposed on certain types of income/income, and is in the form of:

The gross turnover (sales turnover) of a business does not exceed IDR 4.8 billion in 1 tax period;
Interest from deposits and other types of savings, interest from bonds and state bonds, and interest from savings paid by cooperatives to their respective members;
Prizes in the form of lottery/draw;
Transactions in shares and other securities, derivative transactions traded on the stock exchange, and transactions in the sale of shares or transfer of capital of company partners received by venture capital companies;
Transactions regarding the transfer of assets in the form of land and/or buildings, construction services businesses, real estate businesses, and leases of land and/or buildings; And
Other certain income, as regulated in or in accordance with Government Regulations.
When Income Tax Article 4 Paragraph 2 is imposed on transactions between a company and an individual, where the company acts as the recipient of the income, then the company is obliged to pay this tax only.

Meanwhile, in the case of transactions that occur between two companies, the payer must collect and settle the tax, not the income recipient.