Article 21 Income Tax Cutting

Oct 13, 2025 by thesweetdesigns.com 104 views

Introduction

The implementation of Article 21 Income Tax (PPh) cutting and reporting at PT Wicaksana Overseas International, Tbk is a crucial process in managing company taxes. Taxation in Indonesia is a field that continues to develop, following the social and economic dynamics that occur. With changes in regulations that can occur at any time, understanding of tax obligations becomes essential, especially for permanent employees who are tax subjects. This article aims to provide an in-depth analysis of the implementation of Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk.

Background

The University of North Sumatra, through the Faculty of Social and Political Sciences, Department of Taxation Administration, organizes the Independent Field Work Practice (PKLM) to improve the quality of student education. This activity aims to provide a deeper understanding of the application of taxation theory in the field and prepare students to be able to adapt to changes in the world of taxation. The PKLM activity is a valuable opportunity for students to gain practical experience and apply the knowledge gained in college into the world of real work.

Article 21 Income Tax Cutting

Article 21 Income Tax is a tax that is imposed on income received by permanent employees, which is usually deducted by the employer. At PT Wicaksana Overseas International, Tbk, this tax deduction is carried out every month based on employee gross income, taking into account factors such as marriage status, dependents, and other income. This cutting process must be done appropriately and accurately to avoid mistakes that can harm both the company and employees. The cutting process involves several steps, including:

Gathering employee data: The company must gather employee data, including gross income, marriage status, dependents, and other income.
Calculating tax obligations: The company must calculate the tax obligations of each employee based on the gathered data.
Deducting tax: The company must deduct the calculated tax from the employee's gross income.
Reporting tax: The company must report the deducted tax to the Directorate General of Tax.

Reporting PPH Article 21

After the cutting is done, the next step is tax reporting. PT Wicaksana Overseas International, Tbk is required to report Article 21 Income Tax with the Directorate General of Tax every month. This reporting must be carried out using the SPT PPh Article 21 Form and is equipped with proof of cutting for each employee. Regularity in reporting is very important, because the delay or inaccuracies in the report can result in administrative sanctions. The reporting process involves several steps, including:

Preparing the report: The company must prepare the report using the SPT PPh Article 21 Form.
Gathering proof of cutting: The company must gather proof of cutting for each employee.
Submitting the report: The company must submit the report to the Directorate General of Tax.
Following up on the report: The company must follow up on the report to ensure that it is processed correctly.

Impact Analysis of the Implementation of Article 21 Income Tax

Implementation of Article 21 Income Tax Cutting and Reporting not only has an impact on company tax compliance, but also to employees as tax subjects. Appropriate cutting obligations will ensure that employees pay taxes in accordance with the income they receive. This contributes to state development through more optimal tax income. On the other hand, if cutting is not done properly, employees can face problems when reporting the annual tax, which can result in fines or legal problems.

Conclusion

Implementation of Article 21 PPh Cutting and Reporting at PT Wicaksana Overseas International, Tbk is a complex process, but it is very important to ensure tax compliance. Through field practice activities, students can gain valuable insights about the world of taxation and prepare themselves to face existing dynamics. With a good understanding of taxation, it is hoped that future generations will be able to become reliable professionals and can contribute positively to the economy and state development.

Recommendations

Based on the analysis of the implementation of Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk, the following recommendations are made:

Improving the cutting process: The company should improve the cutting process to ensure that it is done accurately and efficiently.
Enhancing tax reporting: The company should enhance tax reporting to ensure that it is done regularly and accurately.
Providing training to employees: The company should provide training to employees on tax obligations and reporting to ensure that they understand their responsibilities.
Following up on reports: The company should follow up on reports to ensure that they are processed correctly and that any issues are addressed promptly.

By implementing these recommendations, the company can ensure that it is in compliance with tax regulations and that employees are aware of their tax obligations.

Q: What is Article 21 Income Tax?

A: Article 21 Income Tax is a tax that is imposed on income received by permanent employees, which is usually deducted by the employer. At PT Wicaksana Overseas International, Tbk, this tax deduction is carried out every month based on employee gross income, taking into account factors such as marriage status, dependents, and other income.

Q: What is the purpose of cutting and reporting Article 21 Income Tax?

A: The purpose of cutting and reporting Article 21 Income Tax is to ensure that employees pay taxes in accordance with the income they receive. This contributes to state development through more optimal tax income.

Q: Who is responsible for cutting and reporting Article 21 Income Tax?

A: The company is responsible for cutting and reporting Article 21 Income Tax. The company must gather employee data, calculate tax obligations, deduct tax, and report tax to the Directorate General of Tax.

Q: What are the consequences of not cutting and reporting Article 21 Income Tax properly?

A: If cutting and reporting Article 21 Income Tax is not done properly, employees can face problems when reporting the annual tax, which can result in fines or legal problems.

Q: What is the role of the Directorate General of Tax in cutting and reporting Article 21 Income Tax?

A: The Directorate General of Tax is responsible for receiving and processing the report of Article 21 Income Tax. The company must submit the report using the SPT PPh Article 21 Form and is equipped with proof of cutting for each employee.

Q: How often must the company report Article 21 Income Tax?

A: The company must report Article 21 Income Tax every month. Regularity in reporting is very important, because the delay or inaccuracies in the report can result in administrative sanctions.

Q: What are the benefits of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk?

A: The benefits of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk include:

Improved tax compliance: The company can ensure that it is in compliance with tax regulations.
Increased tax income: The company can contribute to state development through more optimal tax income.
Reduced administrative sanctions: The company can avoid administrative sanctions by reporting tax regularly and accurately.

Q: What are the challenges of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk?

A: The challenges of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk include:

Complexity of tax regulations: The company must comply with complex tax regulations.
Limited resources: The company may have limited resources to dedicate to tax compliance.
High risk of administrative sanctions: The company may face administrative sanctions if it fails to report tax regularly and accurately.

Q: How can the company overcome the challenges of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk?

A: The company can overcome the challenges of implementing Article 21 PPh cutting and reporting on permanent employee income at PT Wicaksana Overseas International, Tbk by:

Improving tax knowledge: The company can improve its tax knowledge by training employees on tax obligations and reporting.
Enhancing tax reporting: The company can enhance tax reporting by using technology to automate the reporting process.
Following up on reports: The company can follow up on reports to ensure that they are processed correctly and that any issues are addressed promptly.