Tax Planning Article 21 PT PH Groups in Indonesia

Abstract

Abstract.

The highest source of Indonesian state revenue to date still comes from tax revenues, especially income tax, including income tax article 21. Apart from that, the latest regulations in Law No. 7/2021 state that in-kind/enjoyment is a tax object, so that companies as taxpayers have to bear the responsibility. tax expense.   In this case, it is necessary to carry out tax planning to regulate financial activities in order to minimize the tax burden and streamline company expenses. This research aims to assess the level of efficiency of Article 21 tax planning on the company's tax burden. This research focuses on the Article 21 Tax calculation methods, namely the gross method, net method, mixed method and gross up method. The comparative method is used in this research to get the highest value. Data uses secondary data obtained PT PH Groups. The results of this analysis show that applying the gross up method is able to minimize the tax burden paid by the company. The implications of this research state that companies incur Article 21 Tax costs by providing tax benefits of the same amount as the tax owed so that the company's total burden remains in the highest position while the tax burden is the lowest. Thus, the impact is that the tax burden borne becomes smaller.

Keywords: Tax Planning, Gross up Method,  Net Method,Tax Article 21.