Efficient Tax Basis: Utilisation of Other Value DPP in PMK 131/2024

https://epajak.or.id/ Efficient Tax Basis: Utilisation of Other Value DPP in PMK 131/2024 , Tax Consultant – Particularly in relation to Value Added Tax (VAT) and Income Tax (ITA), the Income Tax DPP is often in the news. Other Value DPP is one of the DPP variations that are often used. As the basis for determining Income Tax (ITA), the Income Tax DPP is an important component of the Indonesian tax system. In fact, DPP PPh represents the total amount of taxable income that individual taxpayers and business entities are required to report, in accordance with applicable laws. However, taxpayers need not worry as Jakarta Tax Consultants can help to manage the taxation related to this DPP PPh and VAT as well as various other tax obligations.

In addition to ensuring that tax responsibilities are met accurately, a thorough understanding of DPP PPh and appropriately selecting a Tax Consultant promotes compliance and supports greater tax transparency.

What is the DPP for Other Values?
DPP for Other Values serves as the basis for calculating VAT that is based on a certain value determined by laws and regulations and not the selling price of goods or services. DPP for Other Value is usually used in unique situations where it is difficult to ascertain the transaction value directly. The Minister of Finance Regulation (MoF Regulation), which governs the use of the Other Value DPP, provides comprehensive guidance on when and how to apply this technique. Regulation on the Use of Other Value PPH DPP in PMK 131/2024 The process of calculating Value Added Tax (VAT) on the delivery of certain goods and services, with the exception of taxable goods classified as luxury (BKP Mewah), is regulated in Minister of Finance Regulation (PMK) No. 131 Year 2024.

In this regulation, the DPP value used is 11/12 of the selling price or transaction reimbursement. It is important to note that this provision does not apply to the calculation of income tax (PPh), but only to the calculation of VAT. In principle, this 11/12 DPP becomes a kind of ‘standard’ reference for Taxable Entrepreneurs (PKP) in calculating VAT on the delivery of Taxable Goods (BKP) and Taxable Services (JKP).

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Through the Directorate General of Taxes (DGT), the Ministry of Finance confirms that the Other Value DPP 11/12 only applies for VAT collection purposes, not for Income Tax DPP. Jakarta Tax Consultants can be very helpful in managing taxes related to the current VAT and Income Tax DPP, so that taxpayers no longer need to worry about managing it.

Illustration of the use of PMK 131/2024 in transactions
The following is an example case that illustrates how this provision is applied:

PT X, a taxable entrepreneur (PKP), supplies architectural services to PT Y on 5 January 2025, with a total transaction value of IDR 12,000,000 (excluding VAT and income tax). The transaction is regulated by PMK 131/2024 because this service is not included in the supply of taxable goods classified as luxury. In addition, in accordance with PMK 141/PMK.03/2015, architectural services are included in the types of services covered by ITA 23.

Here are the details of the calculation:

VAT calculation: Rp11,000,000 (11/12 x Rp12,000,000) is the DPP of VAT.
PT X collects VAT amounting to Rp1,320,000 (12% x Rp11,000,000) from PT Y.
Calculation of Income Tax Article 23:
The total transaction amount, Rp12,000,000, remains the tax base (DPP) for Income Tax Article 23.
For the payment to PT X, PT Y deducts Rp240,000 (2% x Rp12,000,000) in the form of income tax Article 23.
If you are in Jakarta with tax issues, and need help from a trusted professional Jakarta tax consultant, you can contact us on this page to conduct an online tax consultation. So that your business tax payments are optimised and not expensive

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