Businesses need to be aware of the various types of taxes in a company. They need to understand how to manage them efficiently. So, they are no longer afraid of taxes or experience losses due to tax payments. Through taxes, a country can also develop for the better.
The Importance of Understanding Tax Types in Companies
Taxes are an essential contribution that companies must pay to the government. This includes many types, ranging from income, sales, or property assets. In addition, taxes also aim to support various public services in a country.
1. Income Tax
Income tax is a tax imposed on individuals or entities and relates to the income they earn during a tax year. Income tax is divided into two categories, final and non-final. In addition, corporate income tax also has 9 types.
The types of income tax applicable in Indonesia are Income Tax Article 21, Income Tax Article 22, Income Tax Article 23, Income Tax Article 24, Income Tax Article 24, Income Tax Article 26, Income Tax Article 29, Income Tax Article 15, Income Tax Article 4 paragraph 2, and value-added tax. Of course, each type of income tax has its own calculation method and must be adjusted to your income.
2. Value-Added Tax
Simply put, Value-Added Tax or VAT is a type of tax that is added to a transaction. Certainly, people often hear the term VAT, which is listed on shopping receipts from various stores. In practice, the seller must create an electronic tax invoice as proof of VAT collection.
For now, the VAT rate is 11% and will increase to 12% in 2025. Gradually, this rate will continue to rise in accordance with the needs and income of the country. The increase in tax rates is directly regulated by the Government Regulation and is designed by the DPR and the President.
3. Luxury Goods Sales Tax
Basically, all sales products are subject to taxation, including luxury goods. The concept of luxury goods refers to products that are not basic necessities, consumed only by certain people, and serve to indicate class or social status.
The tax rates themselves vary, ranging from 10% to 200%. However, when entrepreneurs export taxable goods classified as luxury items, they may be exempt from taxes. Individuals or companies making tax reports must use the SPT Masa PPN 1111 form.
4. Land and Building Tax
The last type of tax that companies should be aware of is the Land and Building Tax. This is a levy that companies must pay for the presence of their land and buildings. Certainly, every plot of land and building available will provide benefits and socioeconomic status for the company.
The concept of “land” in this context includes fields, fields, gardens, land, yards, and mines. Meanwhile, “buildings” encompass residential houses, multi-story buildings, shopping centers, fences, swimming pools, and toll roads.
5. Managing Sales Taxes
Each type of tax in a company has different management methods. However, in general, this involves collecting or deducting taxes on taxable objects and subsequently remitting the deduction. Companies are also required to pay corporate income tax.
Furthermore, companies need to create tax invoices, whether online or offline. They must also report SPT Masa PPH, Unifikasi, SPT PPN, and SPT Tahunan Badan. Through these various tax reports, Indonesia can undergo rapid development in various aspects.
6. Property Tax and Its Impact on Companies
Property tax is a levy that applies to properties owned by companies. This type will have a significant impact on the company, especially when it has many high-value assets. Based on this, it is essential for the company to understand the correct handling.
When a company makes mistakes in paying or managing taxes, it may incur losses. These losses could be economic or related to properties, such as having a house taken over by the state or having to pay a fine of hundreds of millions.
Tax Strategies for Increasing Profit
Companies need to know the correct and efficient tax strategies to help increase profits. One strategy they can employ is optimizing the tax structure. For example, by utilizing applicable tax incentives.
Furthermore, companies can maximize legal tax deductions and manage income to reduce the tax burden. Of course, all of these strategies can be done legally, meaning they will not incur fines or violate any regulations.
Reducing the Corporate Tax Burden
For some people, taxes like these can be burdensome, as they can deduct a significant amount from their income. There are several methods that companies can use, such as deduction management, tax structure selection, incentive selection, and tax planning.
It is important for companies to fully understand which deductions they can use to reduce taxable income. Then, they can plan the legal corporate legal structure that will be most tax-efficient. Only then should they take advantage of the incentives offered by the government.
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That’s all about the types of taxes in companies that you should know. As a business person, this is crucial, so don’t neglect it. If you feel that you don’t fully understand it, it’s advisable to hire a professional tax expert to handle all tax-related matters.