Non deductible dan Deductible Expense

hwkhor ini berasal dari manakah?

I'm Malaysian. 🙂
Company I'm working right now got branch in Batam Indonesia, and I'm incharged the accounts, but due to the info from staff in Batam and online source is limited, I have no choice to seek help from you guys.

yes sir/mam

– taxable income resulted from part of gross income which entitled tax facility:
= Rp 4,800,000,000 / Rp 20,000,000,000 x Rp 350,000,000 (assuming that this is the taxable income)
= Rp 84,000,000
– taxable income resulted from part of gross income which doesnt entitled tax facility:
= Rp 350,000,000 – Rp 84,000,000
= Rp 266,000,000

– tax payable:
= ([50% x 25%] x Rp 84,000,000) + (25% x Rp 266,000,000)
= Rp 77,000,000

you could read that (simple) calculation on the elucidation of the income income tax law though, or read more in SE – 66/PJ/2010 but I'm afraid its only written in indonesian

cmiiw

if that's the case, I recommend you to hire registered tax consultant instead

Hi Pradamai, really appreciated your explanation in details. Thank you very much!

47. Biaya entertaiment (SE 27/PJ/1986 :
a) tidak dibuat daftar nominatif
b) dibuat daftar nominatif : nomor urut, jenis, nama tempat, alamat dan jumlah entertaiment diberikan, relasi : nama, posisi, nama dan jenis perusahaan
How to identify the above entertainment expenses with or without nominative? Most of the entertainment receipts/bills are restaurant, lounge, KTV, etc…

And if the travelling expenses like hotel, is it the invoice must to show company name? to use company name for registration?

Mr Hwkhor, sepertinya you understand bahasa indonesia, is that right?

no such thing in Indonesia if it is involving entertainment you can make a entertainment list or not. All the entertainment expense need a nominative list, this list was also has a format there is one provided in this forum

http://www.ortax.org/ortax/?mod=kontri&page=show&i d=46&q=&hlm=5

Yes, it has to be in the company name, except for flight ticket it can not use the company name…

Hi Hendrioye, I can read a bit as bahasa Malaysia is bit similar with bahasa Indonesia.

Thanks Solace for your explanation. 🙂

Hi frens,
I've gone thru the files with listing of deductible and non-deductible expenses with google translate, still I have some don't really understand:
1) advertisement and donation expenses, are both of these deductible expenses? Any exception if it is deductible? (Note: not stated in the list)
2) Is audit/accounting fee paid to outsource accountant a deductible expenses?
3) Beban starco/handphone, penyusutan kel 1 → what is the penyusutan meant? is this mobile expenses? if yes, example of mobile expenses.
4) Beban pemeliharaan/perbaikan, pulsa HP, dsb → is this repair & maintenance for all like office, car, computers, etc? 50% on the totalled can only be deducted?
5) If company would like to give dividend to shareholder, is this deductible expenses?
6) Is director fee a deductible expenses?
7) If there is commission for salesman, is this allowable expenses?

Oops! So many questions here. Hope can get assistance from you guys.
Thanks in advance.

advertisement yes with , donation depend (there is an exception for donation)

yes

penyusutan means depreciation, means it was a class of asset with different depreciation (4 years, 8 years, 16 years, 20 years)

Nay, 50% if it is used by the company management/employees only…

i don't know how you calculate a dividend in your country, but in Indonesia dividend is paid after you calculated the income after tax. So it was not a component of an expense, therefore un-deductible..

Yes it can be an expense in your commercial financial report, but it will be adjusted in fiscal financial report…

to put it simply all expense is allowable in commercial financial report, but in fiscal financial report it will be…a deductible expense hehe, don't forget to WHT tax art 21 when you do…

that is a lot actually, are u considering using a consultant or an auditor?i think u will have a difficulty with many of the Indonesia regulation with only a help from a forum…

Director fee is a prive?if it's not a prive than i believe it can be deducted as a salary expense/wages, WHT art 21…

Hi Solace, we have consultant and auditor who did the fiscal report, because I'm not direct dealing with them, so I need to read and understand all before talk to local staff and auditor.

Think I'll have another question after read thru your reply. 😛
By the way, do you have Skype or any other way to contact you if you don't mind?

don't worry shoot it here, maybe some good guy will help 😉

hehe…

hi hwkhor! wow you really are persistent *clap hands*
well then let me add some of solace's answers based on my perspective

if you don't mind you could read the explanation in article 4 paragraph 3 section a of income tax law

it's not about the mobile expense, but it's about the depreciation of the mobile phone –fixed assets

I believe what you should look for is this:
"mobile expenses from cellular phones also maintenance and depreciation expenses from sedan type vehicles, owned by the company and used by a particular employee because of the position or jobs, can only be deducted by 50%"

AFAIK dividend isn't an expense, cmiiw

it depends on how you count the fee, if you count it based on some percentage of your company's EAT then it shouldn't be deducted

Hi Pradamai, thanks for your info. 🙂