Method for Eliminations

Methods for Eliminations

1.      Exemption

(1). Object:

      - Full Exemption

      - Exemption with

      - Progression

(2). Tax Exemption:

      - at the top

      - at the bottom

      - proportional TE (tax exemption)

2.      Tax Credit

-          Full

-          Ordinary

-          Tax Sparing

3.      Reduce Rate

4.      Tax Deduction

Exemption:

Object:

Full Exemption / dibebaskan penuh

State of Residence	State of Source	Worldwide
Domestic	Foreign Income
Rp 400.000.000,-	Rp 200.000.000,-	Rp 600.000.000,-
	Tax 20% = Rp 80.000.000,- Penghasilan Luar Negeri Tidak Dihitung

Object: Exemption with Progression

State of Residence	State of Source	Worldwide
Domestic	Foreign Income
Rp 400.000.000,-	Rp 200.000.000,-	Rp 600.000.000,-
Tax Payable 20,83% x Rp 400.000.000,- = Rp 83.333.333,-		Rp 50.000.000,- x 5%     =  Rp 2.500.000 Rp 200.000.000,- x 15% =  Rp 30.000.000,- Rp 250.000.000,- x 25% =  Rp 62.500.000,- Rp 100.000.000,- x 30% =  Rp 30.000.000,-
	Total	Rp 600.000.000,-            =  Rp 125.000.000,-

Progressive Tariff = Rp 125.000.000,-   x 100% = 20,83%

                                    Rp 600.000.000,-

Tax Exemption

State of Residence	State of Source	Worldwide
Domestic	Foreign Income
Rp 400.000.000,-	Rp 200.000.000,-	Rp 600.000.000,-
Tax Payable 20,83% x Rp 400.000.000,- = Rp 83.333.333,-		Rp 50.000.000,- x 5%     = Rp 2.500.000 Rp 200.000.000,- x 15% = Rp 30.000.000,- Rp 250.000.000,- x 25% = Rp 62.500.000,- Rp 100.000.000,- x 30% = Rp 30.000.000,-
	Total	Rp 600.000.000,-            = Rp 125.000.000,-

At the top:	Tax exemption = 30% x Rp 200.000.000 Tax to be paid = Rp 125.000.000,- (-) Rp 60.000.000	= Rp 60.000.000,- = Rp 65.000.000,-
At the bottom:	Tax exemption =  (Rp 50juta x 5%) + (Rp 150juta x 15%) Tax to be paid = Rp 125.000.000,- (-) Rp 25.000.000,-	= Rp 25.000.000,- = Rp 100.000.000,-
Proporsional Tax Exemption :  Rp 200.000.000,-   x Rp 125.000.000,-  Rp 400.000.000,-		=Rp 62.500.000,-

Tax Credit Method

Full tax Credit:

Total Income	= Rp 600.000.000,-	Tax	= Rp 125.000.000,-
Foreign Income	= Rp 200.000.000,-	Rate 40%	= Rp 80.000.000,-
The amount of tax to be paid			= Rp 45.000.000,-

Ordinary Tax Credit

Total Income			= Rp 600.000.000,-		Tax		= Rp 125.000.000,-
Maximum credit for foreign income:
a.	Rp 200.000.000,- x Rp 125.000.000,- Rp 600.000.000,-						= Rp 41.670.000,-
b.	Creditable foreign tax			= 40% x Rp 200.000.000,-			= Rp 80.000.000,-
c.	Acc. To domestic see (tax exemption at the bottom)						= Rp 25.000.000,-
	Excess credit	Rp 80.000.000,- (-) Rp 25.000.000,-					= Rp 55.000.000,-
	Tax to be paid	= Rp 125.000.000,- (-) Rp 41.670.000,- = Rp 83.330.000,-

Tax Sparing:

Fictious Tax Credit:

Dapat dikreditkan sejumlah % “non treaty tax” walaupun sebenarnya tidak dibayar penuh.

Total Income	= Rp 600.000.000,-		Tax	= Rp 125.000.000`
Dengan treaty “tax holiday” 0% x Rp 200.000.000,-
Metode tax sparing seolah-olah 40% (Rp 200.000.000,-)				= Rp 80.000.000,-
Masi harus dibayar adalah (Rp 125.000.000,- (-) Rp 80.000.000,-				= Rp 45.000.000,-

Reduced Rate

Metode differensiasi tariff (Rate Reduced Method)

Contoh:

Di Negara X, tuan A berpenghasilan dari:

(di Negara domisili diberikan pengurangan tariff  ¾-nya)

Dalam Negeri:		Luar Negeri:
Rp 15.000.000,- x (40%)		Rp 30.000.000,- (30%)
= Rp 6.000.000,-	+	(40% - (¾ x 40%) x Rp 30.000.000 = Rp 3.000.000,-
= Rp 9.000.000,-  (adalah pajak yang harus dibayar di dalam negeri)

Tax Deduction

Total Income                                                              = Rp 600.000.000,-

Dikurangi:

Pajak dibayar diluar negeri (pajak dianggap sebagai biaya)

Yaitu: Pasal 17 x Rp 200.000.000,-                           = Rp 25.000.000,-

Penghasilan Kena Pajak                                            = Rp 575.000.000,-