Corporate tax: Risks If the Company Does Not Pay Taxes

financialtreat – will explain about Corporate tax: Risks If the Company Does Not Pay Taxes which you will get in the following article. let’s look at this article carefully!

A tax is a levy of a coercive nature and is obliged to be paid by a person, entity or company. Well, this time we will thoroughly explore the company tax. Corporate tax includes direct taxes that must be paid directly by the taxpayer himself and are usually paid periodically. So, what taxes are the obligations for corporate or corporate taxpayers? Here are some of them.

Risks If the Company Does Not Pay Taxes

Miscellaneous corporate tax documents

There are several types of taxes that are the obligations of corporate taxpayers. Whether the body is in the form of a CV, PT, firm or others. This corporate tax is imposed on business entities and legal entities that already have an NPWP.

One of the functions of taxes for companies or business entities is to find out their financial health. Because to calculate the taxes owed and those that have been paid, detailed and comprehensive financial statements are needed and of course the official tax application of the DGT.

From there, it can be identified how the company’s current financial condition and predictions for the future will be. The following are the types or examples of corporate taxes that are charged to corporate taxpayers.

1. Income Tax Article 21

This article is imposed on employees of a company. But usually companies directly deduct from the salaries of their employees. PPh 21 is imposed on wages, salaries, benefits, bonuses, honorariums and so on.

Where this is adjusted to the responsibilities of each employee. The amount of deductions imposed on employees’ salaries for taxes also varies. It depends on the amount of PKP for each employee.

2. Income Tax Article 22

This tax is charged to companies that carry out export or import activities of luxury goods. For the imposition of this tax, the condition is that the export and import activities provide benefits for the two parties who transact. Compared to other types of income tax, PPh 22 is somewhat more complicated in its provisions.

3. Income Tax Article 23

This income tax is imposed on the taxpayer when the following transactions or activities occur:

  • Distribution of dividends or profits on the company’s shares to shareholders
  • Royalties paid for a work
  • Pay interest on loans
  • Pay bonuses, prizes or awards
  • Pay for consultant services as stated in the Minister of Finance Regulation number 141 / PMK.03 / 2015
  • Payment of land rent, buildings and the use of assets in other forms

4. Income Tax Article 25

PPh 25 this entity is a type of corporate tax in the form of installments on taxes owed, refers to the total annual income tax return and has been deducted from income tax deductions.

This type of Income Tax is functioned to ease the burden on the taxpayer. This tax must be paid off within one year, and the payment cannot be represented.

5. Income Tax Article 26

This tax is charged to taxpayers abroad, when transacting payments of interest, royalties, dividends or salaries and other similar transactions. Thus you have to deduct the value of such transactions with this Income Tax 26. Based on the provisions imposed in Indonesia, the tax imposed is 20%. But if it refers to P3B, then rates can change.

6. Income Tax Article 29

This one tax will appear in the annual tax return as an underpayment tax. Generally, it will appear if the total tax owed by the company in a year is greater than the amount of tax that has been deposited. You must complete this obligation before depositing the annual tax return for the corporate taxpayer, which is April 30.

7. Income Tax (PPh) Article 15

This one corporate tax is imposed on the income received by a particular taxpayer. For example, foreign insurance companies, international airlines, foreign companies, as well as building investment businesses are purpose-after-handover.

8. Income Tax Article 4 Paragraph 2

Often this tax is also referred to as the final tax. This tax is imposed on several types of income earned and the deduction is final. The rate of this final income tax is different for each income. For example, a company with a turnover below 4.8 billion / year then the tax rate is 1%.

9. Value Added Tax (PPn)

Value added tax or PPn, is a tax imposed on various goods that experience value added at the time of changing hands from producers to consumers. For companies that transact the sale of taxable goods and services, then as valid proof of collecting VAT, they must issue invoices.

For buying and selling transactions as well as imports, VAT or Value Added Tax is charged at 10%. As for export activities, the VAT is 0%.

Corporate Tax Benefits

Although corporate tax is a coercive obligation for taxpayers, there are many benefits. No exception with corporate tax, which also provides many benefits for business actors or business entities themselves. Some of the benefits include:

  • As a reflection of the credibility of the company. When the company carries out its obligations as a taxpayer well, it is certainly an assessment in itself.
  • This will show that the company has good credibility. That way it will be easier to develop.
  • Indicates the financial condition of the company. Timely payment of taxes may indicate if the financial condition of the company is good.
  • That is, the overall condition of the company is also okay. Thus, it will make partners more confident to cooperate.
  • Prevent corporate or corporate taxpayers from being fined for negligence in paying their obligations. So try to be on time to pay taxes.

Sanctions for Failure to Pay or Deposit Tax Returns

As a tax-abiding taxpayer, you must deposit as well as pay the taxes that you are dependent on. And when you have paid taxes, don’t forget to make and save proof of payment in the efaktur application, as an archive.

But before that, as a Taxable Entrepreneur (PKP), of course, you have to use the tax enofa to get a Tax Invoice Certificate Number or NSFP. Do not let it be negligent, then make you have to accept sanctions for these negligence. There are two types or types of sanctions due to negligence in paying taxes or reporting them.

1. Administrative Sanctions

In the form of payment of fines, interest or increases as a form of compensation to the state. Fines are reserved for those who neglect to report taxes, interest for those who forget to pay and an increase for violations of tax provisions.

2. Criminal Sanctions

It can be either with a criminal or even a prison sentence. Generally, it is due to manipulation of tax return reports, providing false documents, to deliberately not depositing taxes that have been deducted or depositing tax returns. The penalty can be a maximum of 6 years in prison, or a maximum fine of 4 times the total tax owed.

Company Losses When Not Paying Taxes

Entrepreneurs Can’t Register Online Single Submission/OSS

OSS (Online Single Submission) or Electronically Integrated Business Licensing System is a system to facilitate licensing of a business activity either in the central or regional areas. However, if the entrepreneur or corporate taxpayer does not comply with taxes, they cannot get a Business Identification Number (NIB) from the OSS System.

This is because the OSS system has been integrated with taxation data. This loss will certainly make an entrepreneur unable to register for OSS and eventually not have a Business License that he runs.

Does Not Have a Trusted Reputation in the Eyes of Consumers

Entrepreneurs who have a Taxpayer Identification Number (NPWP) for their company will be seen as more credible in the eyes of consumers. Apart from the fact that NPWP is often a condition of contracts with consumers, entrepreneurs or taxpayers of tax-abiding entities look more professional and have a trustworthy reputation.

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Difficulty Managing Finances on Client Payments

Non-compliance with taxes can also have an impact on the difficulty of managing finances on client payments. Because when collecting goods or services, usually the client will ask for proof of a temporary tax invoice if the company does not comply with tax rules, of course it will be difficult to get the tax invoice in question.

Blacklisted by Tax Officers

There are many sanctions ranging from mild to severe that await for entrepreneurs who do not comply with tax regulations. The sanctions that corporate taxpayers will receive range from collection, blocking to hostage taking or what is known as Gijzeling.

With this information, we can know how important it is to pay taxes for the company. And paying taxes is an equality, where those who feel the good impact are not only the company, but the economic sustainability of the State.

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