Tuesday, 12 March 2013

ADJUSTMENT OF NON TAXED INCOME TO BE EFFECTIVE NEXT YEAR


Adjustment of the amount of Non-Taxed-In­come (PTKP) would be effective as per January 1, 2013. The agreement was made through consultation with the Ministry of Finance carried out on May 2012 and October 15, 2012.

The Director of Illumination Service and Pub­lic Relations, Directorate General of Tax, Kismantero Petrus, in his press release explained that in accordance with Article 7 point (3) Law no 36 2008 on fourth amendment of Law no 7 year 1983 on Income Tax, the Minister of Finance was authorized to stipu­late the size of Non-taxed Income (PTKP) after consultation with the House of Representatives.

Adjustment of non taxed income (PTKP) as mentioned above had been stipulated by the Ministry of Finance in the regulation of The Ministry of Finance no. 162/PMK.011/2012 on adjustment of non-taxed income.

Stipulation of the size of PTKP had been ad­justed to the economic and monetary development and prices of essential needs which kept increasing. Furthermore, adjustment of the size of PTKP was also related to the need for policy to anticipate global eco­nomic slow down as chain affect of financial crisis in Europe and the USA which had the potential of reducing people’s purchasing power.

The adjustment of the size of PTKP was ex­pected to uplift people’s purchasing power which would have its positive impact on national GDP, whether through consumption or through increased savings accounts.

Hence the size of PTKP since January 1, 2013 within the framework of slashing of Income Tax for domestic individual Tax Subjects who received or obtained income from occupation, rendering services, or activities under any other name in any form (Income tax Law chapter 21) and reporting of Income Tax in Annual Tax Notification (SPT) of individuals year 2013 etc were non-taxed income as stipulated in the Regulation of the Ministry of Finance no 162/PMK.011/2012.

Meanwhile the size of PTKP within the frame­work of Reporting Income Tax in Annual Notification (SPT) of Individuals 2012 amounted to PTKP as regu­lated in Law no 36 year 2008 on the Fourth Amend­ment of Law no 7/1983 on Income Tax.
 
Business News - November 19, 2012

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