Analysis of Corporate Compliance Regarding the Calculation, Remittance, and Reporting of Article 21 Income Tax in 2024: A Case Study of PT XYZ

Abstract

This study aims to assess PT XYZ compliance regarding the calculation, remittance, and reporting of Article 21 Income Tax (PPh Pasal 21) for the 2024 tax year. A descriptive qualitative method was employed, utilizing both primary and secondary data. The results indicate that a minor error occurred in the March tax period regarding the calculation of the Religious Holiday Allowance (THR); the THR was calculated separately from the regular monthly income, resulting in an under-withholding. However, the under-withheld amount was recalculated and subsequently deducted in December, thereby rectifying the issue. Remittance of Article 21 Income Tax was consistently timely in accordance with PMK No. 242/PMK.03/2014; however, a tax return (SPT) amendment resulted in an underpayment. Although the outstanding amount was subsequently remitted, the payment was made past the deadline, incurring a 2% administrative penalty. Reporting of Article 21 Income Tax was consistently timely, adhering to PMK No. 9/PMK.03/2018 regarding Tax Returns.