The Impact of Article 22 Government-borne Income Tax Facilities during the COVID-19 Pandemic on Installment Calculations Income Tax Article 25 at PT TEC

Abstract

The purpose of this study was to analyze the impact that occurs due to the Income Tax Article 22 Exemption facility during the 2019 corona virus pandemic on the calculation of Income Tax Article 25 at PT TEC. The government's purpose with this policy was to assist business in dealing with the 2019 corona virus pandemic by providing exemption from Income Tax Article 22 on Import so that companies can reduce cashflow to make prepayments of Income Tax Article 22. The analytical method used in this research is descriptive method and data collection is done through observation, documentation and interviews with the company. The results of the study show that the Income Tax Article 22 Exemption facility have an impact on the company on calculating the installments of Income Tax Article 25 for the following year, because with the exemption of imports Income Tax Article 22 means the company does not have credit tax that can be used in calculating Income Tax Article 25. The consequences that occur lead to Income Tax Article 25 installments have significantly increased. In the following year the company experienced a decline in sales, due to the increasing calculation of the installments of Income Tax Article 25, the company experienced an overpayment of corporate income tax even though the company had used the existing rules to apply for a reduction in Income Tax Article 25, so it was inevitable that the company would be subject to an examination with the criteria of overpaid corporate income tax.

Keywords: Import Income Tax Article 22, Income Tax Article 25, Corporate Income Tax

DOI: 10.7176/RJFA/13-12-06

Publication date:June 30^th 2022