Tax Due: Legal Basis, Types, and Provisions

Tax due is the amount of tax that must be paid by the taxpayer within a specific period in accordance with tax regulations. Tax due arises from transactions, income, or economic activities that are subject to tax. In the tax system, tax due is calculated based on the applicable tax rates for the tax objects owned or acquired by the taxpayer.

A simple example of tax due is the income tax (PPh) that an employee must pay on their monthly salary. The amount of tax due is calculated based on the applicable tax rates and taxable income after deducting non-taxable income (PTKP) and other deductions.

What is the Difference Between Tax Due and Tax Debt?

Although they sound similar, tax due and tax debt are two different concepts in taxation. Here are the differences between them:

1. Tax Due:
   • It is the tax obligation arising from the existence of a tax object or income subject to tax.
   • It is calculated based on the applicable tax rates and the taxpayer’s condition.
   • Example: Income tax (PPh) that must be paid by the taxpayer.
2. Tax Debt:
   • It is the tax obligation that has not been paid by the taxpayer after the payment due date.
   • It occurs when the taxpayer fails to pay the tax due on time.
   • Example: If the taxpayer does not pay the income tax (PPh) due by the deadline, the amount becomes tax debt.

In short, tax due is the obligation to be paid, while tax debt is the obligation that has not been paid after the due date.

Also Read: What is Value Added Tax (VAT)?

Legal Basis

Tax due is regulated in various tax laws and regulations in Indonesia. Here are some legal bases that govern tax due:

1. Law Number 6 of 1983 on General Provisions and Tax Procedures (KUP):
   • Regulates the taxpayer’s obligation to calculate, pay, and report tax due.
2. Law Number 36 of 2008 on Income Tax (PPh):
   • Regulates the calculation of tax due for individual and corporate taxpayers.
3. Law Number 42 of 2009 on Value Added Tax (VAT):
   • Regulates tax due on the delivery of taxable goods and services.
4. Minister of Finance Regulations (PMK) and Directorate General of Tax Regulations (PERDIRJEN):
   • Provide detailed explanations on the procedures for calculating, paying, and reporting tax due.

Types

Tax due can be categorized based on the type of tax. Here are some common types of tax due in Indonesia:

1. Income Tax (PPh):
   • Tax due on income received by taxpayers, both individuals and entities.
   • Example: Article 21 Income Tax (employee income), Article 22 Income Tax (import of goods), Article 23 Income Tax (income from capital).
2. Value Added Tax (VAT):
   • Tax due on the delivery of taxable goods and services.
   • Example: VAT on the sale of goods in retail stores.
3. Land and Building Tax (PBB):
   • Tax due on the ownership or use of land and buildings.
   • Example: PBB for homeowners or landowners.
4. Stamp Duty Tax:
   • Tax due on documents used as evidence in legal activities.
   • Example: Stamp duty for an agreement letter.
5. Regional Taxes:
   • Tax due managed by local governments.
   • Example: Motor Vehicle Tax (PKB), Hotel and Restaurant Tax.

Also Read: What is NPWP: Definition, Types, Requirements to Create It

Calculation Provisions

The calculation of tax is done based on the provisions applicable to each type of tax. Here are the general steps in calculating tax due:

1. Identify the Tax Object:
   • Determine the tax object that forms the basis for calculating tax due.
   • Example: Income, sales of goods, or property ownership.
2. Calculate the Tax Base (DPP):
   • Calculate the value that will serve as the basis for tax calculation.
   • Example: Taxable income for PPh or sales value for VAT.
3. Apply the Tax Rate:
   • Use the applicable tax rate based on the type of tax and provisions in force.
   • Example: Article 21 Income Tax rate for employee income.
4. Calculate Tax Due:
   • Multiply the DPP by the tax rate to get the amount of tax due.
   • Example: If the DPP is IDR 100 million and the tax rate is 10%, then the tax due is IDR 10 million.

Payment

Tax payments must be made in accordance with applicable provisions. Here are a few things to note:

1. Payment Methods:
   • Tax due can be paid through perception banks, post offices, or online payment systems (e-Billing).
2. Payment Proof:
   • After payment, the taxpayer will receive proof of payment (SSP or billing code), which must be kept as a record.
3. Reporting:
   • Payment of tax due must be reported through the Tax Return (SPT) according to the type of tax.

Due Date for Payment, Deposit, and Reporting of Taxes

The due date for payment, deposit, and reporting of tax due varies depending on the type of tax. Here are examples of provisions for some tax types:

1. Article 21 Income Tax:
   • Payment and deposit are done monthly, while SPT reporting is done annually.
2. VAT:
   • Payment and deposit are done monthly, while VAT period SPT reporting is done monthly.
3. PBB:
   • Payment is done once a year, usually at the end of the year.

Credit

The crediting of tax due is the process of reducing the tax to be paid by tax credits that have been paid or withheld by another party. An example is the crediting of Article 22, 23, or 24 income tax against tax due in the Annual Tax Return (SPT).

Also Read: How to Report Your Personal Annual Tax Return Easily and Quickly

Refund

In some cases, taxpayers may apply for a refund (restitution) of tax due if there is an overpayment. This process is regulated under the KUP Law and requires an application to be submitted to the Directorate General of Taxation (DJP).
Tax due is a tax obligation that must be fulfilled by every taxpayer. By understanding its definition, legal basis, types, and calculation provisions, you can ensure tax compliance and avoid penalties that may arise. Always pay attention to the schedule for payment, deposit, and reporting of tax due to avoid tax debt.

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