Based on PER – 1/PJ/2023 Article 2 paragraph (1) Royalty income in whatever name and form that is paid, provided to be paid, or when payment is due to a resident Taxpayer or permanent establishment is the object of Income Tax deduction Article 23.
Article 23 Income Tax withholding rate on royalty income as referred to in paragraph (1) is 15% (fifteen percent) of the gross amount excluding value added tax. The gross amount as referred to in paragraph (2) for domestic individual taxpayers applying Income Tax calculation using the Net Income Calculation Norm, is 40% (forty percent) of the total royalty income as referred to in paragraph (1).
The withholding agent is obliged to make proof of withholding PPh Article 23 and must provide proof of withholding intended to the domestic individual taxpayer as the party withheld, must deposit PPh Article 23 which has been withheld to the state treasury and report it in the SPT Period of Unification Income Tax.
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