Income Tax Incentives Research Articles

Evaluation of Income Tax Incentives (PPh) Article 21 In the Midst of The Covid 19 Outbreak at PT Sanipak Indonesia

The government made regulations regarding income tax incentives for income tax article 21 as outlined in PMK No.110/PMK.03/2020, this is the impact of covid 19. COVID (Coronavirus Disease) 19 is a virus that causes respiratory infections in humans from the common cold to serious illnesses. Since the Covid-19 outbreak found in Wuhan, China in 2019 has affected the economy of the entire world, including Indonesia. Therefore, the government made a new regulation regarding income tax incentives for article 21 income tax. The author conducted research using a descriptive method so that the results obtained were data on PT Sanipak Indonesia employees who received article 21 income tax incentives and data on PT Sanipak Indonesia employees who did not receive article 21 income tax incentives. A total of 445 employees who did not receive article 21 income tax incentives. Employees who do not receive income tax incentives article 21 are mostly because they do not have an NPWP.

Effects of Tax Incentives on Financial Performance of Manufacturing Firms in Nyeri County

Purpose: The main objective of this study was to ascertain how tax incentives affected the financial performance of manufacturing firms in Nyeri County. The study's goal was to look into the impact of tax incentives, corporate income tax incentives, capital allowance incentives, and custom duty incentives on the financial performance of manufacturing firms in Nyeri County.
 Methodology: The study adopted a descriptive research design. The population for the study comprised of all the 15 manufacturing firms in Nyeri County that were registered by Nyeri County finance department; licensing office 2023. The target population's information was gathered using census methodologies. The data was gathered using questionnaires with likert scales to capture the primary data. The questionnaires were split into two sections that captured the demographic information in the first part, and the second part capturing data on the study variables. The study collected secondary data from the audited annual financial reports for the targeted manufacturers and the internal sources for a six-year period, focusing on the specific variables under investigation. Drop and pick method was used to distribute the questionnaire to the participants. Descriptive statistics including the mean, standard deviation, and frequency were used to analyse the data.
 Findings: The study findings established that there exists a significant relationship between capital allowance and the financial performance of manufacturing firms in Nyeri County. Capital Allowance emerged as the most crucial predictor of Financial Performance (Beta = 0.766), followed by Custom Duty Incentive (Beta = 0.498) and Tax Holiday (Beta = 0.359). On the other hand, Corporate Income Tax Incentive had the least effect (Beta = 0.323) on the financial performance of these firms. Participants expressed a positive perception regarding the influence of capital allowances on their respective firms' financial performance, with strong agreement on investment deductions, wear and tear allowance, capital allowance incentives, and overall satisfaction with the current level of capital allowances. The study concluded that customs duty incentives positively affect the financial performance of manufacturers in Nyeri County.
 Unique Contribution to Theory, Practice and Policy: It recommends revisiting customs duty tax policies to gain industry support. Strategic custom duty incentives aligned with economic goals can boost industrial enterprises and stimulate growth. Tax holiday incentives have the potential to increase employment and profitability, encouraging investment and job creation. Corporate income tax incentives were found to enhance manufacturing firms' financial performance, suggesting their prioritization and offering additional incentives, like reduced tax rates, to foster growth. The study suggested further research to explore factors beyond tax incentives that influence the financial performance of manufacturing firms. Additionally, the research recommended conducting similar studies in sectors other than manufacturing to assess the effects of these tax incentives across different businesses. This comparison could help identify the most suitable incentives for each organization.

ANALISIS PERENCANAAN PAJAK (TAX PLANNING) PADA PT PRATAMA GRAHA SEMESTA

According to Law Number 36 of 2008 there are two Tax Subjects, namely, Domestic Tax Subjects (SPDN) and Foreign Tax Subjects (SPLN). One of the Domestic Tax Subjects is a Business Entity that has the largest contribution in tax revenue. The tax that must be paid by the Business Entity depends on the profit it generates each year. The higher the profit, the higher the tax. Therefore, to minimize tax payments according to the rules of the taxation frame, Tax Planning is needed, namely several ways to minimize the tax burden without having to violate the tax law. In writing this final project, two methods are used, namely the Observation Method and the Documentation Method. The data used are the Income Tax Return, VAT, and the Financial Statements of PT Pratama Graha Semesta 2020. The results of this final project research, Tax Planning at PT Pratama Graha Semesta utilizes the Government Borne Income Tax (DTP) incentive according to PMK 09/PMK.03 /2021 such as PPh Article 21, PPh Article 22 Imports, Reduction in Installment of PPh Article 25 by 50%, optimizing credit for input tax invoices through the e-invoice application on the Prepopulated VAT menu, collecting evidence of withholding income tax, minimizing the tax burden on Article 23 PPh, avoiding sanctions fines by setting the payment date and separate tax reporting, as well as conducting fiscal reconciliation. So with Tax Planning, tax financing can be well organized.

Barriers and Enablers of Long‐term Land Leasing: a Case Study of Northern Ireland

SummaryLong‐term land leasing offers a viable alternative to land ownership in relation to increasing efficiency of agricultural production, economies of scale, and delivering environmental improvements in terms of land management. However, with no significant tenanted sector in Northern Ireland, access to land via long‐term land leasing is limited. This study analysed the barriers and enablers of long‐term land leasing. To achieve our objective, we employed a mixed methods approach. The results show that the main barriers to long‐term land leasing were environmental concern (around how the land will be managed), inheritance tax implications and the potential effect of long‐term land leasing on future succession plans of the farm business. We also found that as much as 70 per cent of the farmers surveyed believe the inclusion of a ‘break clause’ and the introduction of income tax incentives will encourage the adoption of long‐term land leasing, while 61 per cent of the farmers stated that the environmental management of the land will encourage long‐term land leasing. The study concluded that any model designed to encourage long‐term land leasing in Northern Ireland should include clauses which cover the environmental management of the land and break clauses. Income tax incentives for landowners could also be considered.

Analysis of the Impact of Corporate Income Tax Incentives on Digital Economy Enterprises

This paper evaluates the effect of income tax preferences for digital economy enterprises based on the data of digital economy enterprises in Beijing, Tianjin and Hebei regions from 2017-2021 (in line with the narrower caliber of the National Bureau of Statistics). The research results show that corporate income tax incentives have a significant impact on R&D investment of digital economy enterprises and provide a better incentive for digital economy enterprises to increase their R&D investment efforts. Tax incentives are heterogeneous in nature of property rights for digital economy enterprises, among which there is a greater promotion for private enterprises. Finally, this paper further expands the study on the factors influencing the innovative capability of enterprises and proposes policy recommendations on the relationship between tax preferences and innovation capability of enterprises based on the empirical results.

Incentive effect of tax preferences towards the technological innovation of enterprises--Based on China's GEM listed companies.

The long R&D process, the high risk, and the externalities of technological innovation are challenges that enterprises have to meet when making decisions on R&D investment. Governments share this risk with enterprises through preferential tax policies. We summarized China's preferential tax policies related to enterprises and R&D innovation, and used panel data of listed enterprises from 2013 to 2018 in the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange to explore the incentive effects of current tax policies on the R&D innovation of enterprises. Through empirical analysis, we found that tax incentives significantly motivate R&D innovation input and promote output. In addition, we found that the income tax incentives are greater than that of the circulation tax, since the profitability of enterprise has a positive correlation with R&D investment. Meanwhile, the size of the enterprise is negatively correlated with the intensity of R&D investment.

Relationship between Real Earnings Management with Cost of Debt in Chinese Listed High-Tech Enterprises: The Perspective of Corporate Income Tax Incentives

To encourage corporate investment in innovation or R&D and foster innovative firms, the government of China established standards for the certification of high-tech enterprises in 2008. The business entities that fulfill these standards are entitled to tax deductions. One of the criteria is the ratio of R&D expenses to sales exceeding a specific percentage (which depends on the annual revenue) in the preceding 3 years. Moreover, this study examines data from the CSMAR database for the period 2008-2019 and includes data from 8,233 listed high-tech enterprises. The results show that if the proportion of pre-managed R&D expenses to pre-managed sales that are less than 6% (or 5%), 4%, or 3% in the past three years of firms with different sales range in the current year and managed earnings through sales or R&D expenses to fulfill the standards required for the certification positively influenced the costs of debt (non-significant).

Investigating the Factors Influencing the Intention to Adopt Long-Term Land Leasing in Northern Ireland

Short-term land rental agreements such as the traditional conacre system in Northern Ireland offer flexibility between the landowners and the farmers renting the land. However, the uncertainty of tenure linked to such short-term land rental systems does not allow for farmers renting the land to make longer-term investment planning and decisions, particularly around sustainable land management practices. Long-term tenancy agreements have been identified as a viable option to cope with short-term uncertainties and improve the environmental management of the land. In this study, we analysed the factors influencing farmers’ intention to adopt long-term land leasing with and without income tax incentives in Northern Ireland. To achieve our objective, we employed ordered logistic regression models complemented with qualitative analysis. The results of our analyses showed that varying factors including risk attitude, pro-environmental behaviour, profit consciousness, having a dairy enterprise, the area of farmland owned, the presence of a successor, and the age and education of the farmer influence farmers’ intention to adopt long-term land leasing. However, variability exists depending on the farmers’ rental status and availability of income tax incentives. It can be concluded from the study that policies aimed at encouraging long-term land leasing should take a holistic approach that incorporates environmental and socioeconomic factors.

Analisis Kebijakan Pemerintah dalam Mengatasi Masalah Pengagguran di Indonesia Pasca Pandemi Covid-19

Introduction/Main Objectives: This research aims to find government policies for unemployment in Indonesia after Covid 19. Research Methods: The method used in this research is to wait for a qualitative approach with a research library. Finding/Results: The research results show that the government has implemented policies to address the unemployment problem in post-Covid-19 Indonesia, as follows; (1) Allocating funds for handling Covid-19. (2) Organizing income tax incentive programs and relaxing credit payments. (3) Provision of social assistance to 70.5 million informal sector workers who are included in the vulnerable and poor categories. (4) Conduct various competency and productivity based trainings. (5) Expanding job opportunities for workers affected by the pandemic. (6) Opening of consultation, information and complaint services for workers related to Occupational Safety and Health. (7) Issuance of Pre-Employment Cards to develop competency and job opportunities. Conclusion: The government has carried out the right policies to address the problem of unemployment in Indonesia after Covid-19

The Effect of Tax Incentives, Tax Rates and Tax Services on Msmes Taxpayer Compliance in the Midst of the Covid-19 Pandemic in Manado City

The COVID-19 pandemic has struck around the globe, including Indonesia. The COVID-19 pandemic has had a major impact on economic stability and reduced community productivity, especially for Micro, Small and Medium Enterprises (MSMEs). So that the Government of the Republic of Indonesia through the Ministry of Finance provides tax incentive in an effort to encourage the National Economic Recovery program in the midst of the COVID-19 pandemic. The final Income Tax incentive is a facility for MSMEs taxpayers Borne by the Government. This study aims to determine the effect of tax incentives, tax rates and tax services on MSMEs taxpayer compliance in the midst of the COVID-19 pandemic in Manado City. The research method used in this study is to use quantitative research methods. Sampling technique used in this study is to use purposive sampling and calculated by slovin formula that produces a sample of 100 respondents. Data collection techniques used in this study is using questionnaires. Data analysis techniques used in this study are data quality test, classical assumption test, multiple linear regression analysis and hypothesis test using IBM SPSS Statistics version 25.0 for Windows software. The results of this study indicate that (1) tax incentives do not affect the compliance of MSMEs taxpayers (2) tax rates do not affect the compliance of MSMEs taxpayers, (3) tax services affect the compliance of MSMEs taxpayers, and (4) tax incentives, tax rates and tax services affect the compliance of MSMEs taxpayers.

Analisis Implementasi Insentif Pajak Terkait Covid-19 Pada Rumah Sakit

This study aims to determine the impact of the implementation of tax incentives related to Covid-19 on Hospital X's financial report . The research method used is descriptive qualitative on financial statements and tax reports, especially tax incentives utilized by Hospital X, namely Income Tax Incentive 21 and Income Tax Incentive 25. The results of the analysis in this study found that the utilization of tax incentives at Hospital X has an impact on the company's commercial statements both on company profits, cash flow and balance sheets, while only Income Tax Incentive 25 has an impact on fiscal reports. These results contribute in the form of information to taxpayers in general who have the right to utilize tax incentives to use these incentives for the sustainability of the company by carrying out procedures for the rights and obligations to use tax incentives in accordance with applicable regulations. The results of this research also provide a policy contribution for the Government regarding the benefits of tax incentives for taxpayers, so that it can be a consideration for future tax regulations.

Exploring The Dynamics : Analysis Of Income Tax Incentives, Earnings Management, Tax Avoidance, And Financial Distress Dynamics

Exploring The Dynamics : Analysis Of Income Tax Incentives, Earnings Management, Tax Avoidance, And Financial Distress Dynamics

Analisis Perhitungan PPh final penjualan online sebelum dan sesudah mendapat insentif pajak penghasilan berdasarkan PMK No.9/PMK.03/2021 (Studi Kasus Pada I-support Kediri)

Estimated tax revenue will increase from year to year. In addition to the number that continues to increase every year, taxes are also the largest source of state revenue. Therefore, it is important for taxpayers to deposit taxes into the state treasury in accordance with applicable regulations. This study aims to find out how to apply the final tax incentives in accordance with applicable regulations given by the government in response to Covid-19. In this study the data used are primary data and secondary data. The analytical method used is descriptive quantitative with data collection techniques in the form of interviews and documentation.
 The results obtained that the application of tax incentives decreased the comparison of income tax in 2020 before receiving tax incentives was Rp. 19,724,164 and after receiving tax incentives was Rp. 9,859,082. Meanwhile, in 2021, it can be seen from the comparison that before receiving tax incentives it was Rp. 19,840,739 and after receiving it was 10,017,530. the difference before and after incentives in year to year is quite large, namely in 2020 it is 9,865,082 and in 2021 it is 9,823,208.
 It is hoped that I-Support will be more thorough and updated with changes to existing tax regulations. I-Support is expected to be able to calculate its tax in accordance with the updated regulations. This research is expected to assist researchers in increasing academic knowledge and can provide benefits for other students in conducting research related to online sales income tax incentives.
 Keywords: tax incentives, final tax, online sales tax

INSENTIF PAJAK PENGHASILAN BAGI UMKM: REFORMASI, KERINGANAN DAN KEPATUHAN

As a response to COVID-19, the Government issued some income tax incentives based on the Minister of Finance Regulation (MoF Regulation) No. 23/PMK.03/2020 concerning Tax Incentives for Taxpayers Who Suffered from COVID-19. There are six tax incentives given by the Government to the Taxpayer, one of them is PPh Final DTP UMKM. In 2021, the Government issued two MoF Regulations which extended the period until December 2021. Through Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP), the incentive arrangement is adjusted once again. The research topic will focus on the utilization of tax incentives by taxpayers, in particular, the SMEs after the enactment of UU HPP. This research is normative research using regulatory and structural approaches. The research result shows that the reformation of PPh incentives for SMEs through the UU HPP is meant to 1) simplify and make a permanent facility that can be utilized by the SMEs; and 2) improve legal certainty as part of community support. However, this is not enough. The Government shall enact the implementing regulations of UU HPP to improve awareness and compliance of the SMEs to register their businesses and become the registered taxpayer.

The Policy of Final Income Tax Incentives For Micro, Small Medium Enterprises (MSMEs) During the Covid-19 Pandemic

The Covid-19 pandemic has had a significant impact on Indonesia. The impact of Covid-19 is not only in the health sector, but also in various aspects including economic, social, educational, and so on. Various government policies were carried out to overcome and prevent the wide spread of the Covid-19 virus, such as social distancing, and working from home. It was to reduce the occurrence of crowds by establishing Large-Scale Social Restrictions and Enforcement of Restrictions on Community Activities. However, the government's policy also harmed the economic sector, especially MSMEs. They suffered a lot of losses and some were even unable to continue their business. From such conditions, it would be very difficult for MSMEs to pay tax obligations. therefore, the government made policies in the field of taxation, by providing incentives for MSMEs. The problem was what the benefits of providing this final income tax incentive for MSMEs would be. The research method used was an empirical legal study. The results showed that most of the respondents interviewed by the author had not taken advantage of these incentives due to ignorance of the existence of these incentives, lack of understanding of the procedures, and so on.

Can Tax Incentives Affect MSME Tax Compliance?

The government issued a tax incentive policy for the business sector. This policy was taken to help the public and business actors to survive in the middle period of the Covid-19 outbreak. The Covid-19 pandemic has influenced the relationship between tax incentives and MSME tax compliance. This study examines how much influence tax incentives have on MSME tax compliance. MSME actors get a total income tax incentive of 0.5% as referred to PP No. 23/2018 which is created by the government, where the taxpayers of MSME do not require to make tax deposits. During the Covid-19 pandemic, the government provided tax incentives that are expected to boost MSME tax compliance. The main objective of this study was to examine the impact of tax incentives on MSME tax compliance, using the Covid-19 situation as a moderating factor. The tax incentives in this study consist of knowledge of tax incentives and the use of tax incentives. The research data was obtained from UMKM in Kudus Regency with a sampling technique using purposive sampling. Data were collected from 231 respondents using a survey method. The data was analyzed using moderated regression analysis. The study's findings indicate that knowledge of tax incentives has a positive effect on MSME tax compliance, that use of tax incentives has no impact on MSME tax compliance, and that the Covid-19 pandemic has no influence on the relationship between knowledge of tax incentives and use of tax incentives on MSME tax compliance. The expected implication in this research is to be able to contribute to providing information about the compliance level of MSME taxpayers during the Covid-19 pandemic and to be used as evaluation material for the application of related policies.

FISCAL STIMULUS THROUGH INCOME TAX POLICY ARTICLE 21 AT THE KANWIL DIRECTORATE GENERAL OF TAXES

This Article 21 Government-borne Income Tax Incentive Policy (DTP) began to be implemented in April 2020 through PMK 23/PMK.03/2020 when the Covid 19 pandemic had spread widely in Indonesia, where many companies were shaken by the economy. Seeing the above conditions, the government carried out fiscal stimulus, one of which was through the Income Tax Incentive Policy Article 21 Borne by the Government (DTP), in order to help the economic recovery of the people affected by the Covid 19 pandemic. This study aims to analyze and evaluate how, obstacles, and efforts to overcome obstacles in the Implementation of Article 21 Government-borne Income Tax Incentive Policy (DTP) at the Tax Service Office of the South Jakarta Regional Tax Office I. This study is a qualitative research that focuses on the success implementation of the Government-borne Income Tax Incentive Article 21 (DTP) policy and the obstacles faced by collecting information through interviews with parties implementing the tax incentive policy. The results of the study found that the implementation of Article 21 Government-borne Income Tax Incentives (DTP) was in great demand by the public (the public) because it helped the community, in this case employees, maintain economic purchasing power in the midst of the Covid 19 pandemic that shook the economy in Indonesia.

The Impact of Article 21 Income Tax Incentive Policy During the COVID-19 Pandemic On Tax Revenue

Several policies issued by the government were carried out to minimize the rate of development of the Covid-19 outbreak faster. One of the policies carried out in terms of restrictions on public space for movement by governments around the world is aimed at inhibiting the spread of the Covid-19 virus, including Indonesia. The policies carried out by the government, especially in fiscal policy, have been given to respond in response to the low purchasing power of the people as a result of the impact of the Covid-19 pandemic, one of which is by providing tax incentives in terms of reducing tax rates.
 This research is an associative research that serves to explain or predict between tax incentives as an independent variable to the dependent variable, namely tax revenue. The object of this research is Income Tax Article 21 on the dependent variable, namely tax revenue. The technique used is statistical technique or quantitative technique. This study uses secondary data in the form of individual taxpayer data.
 The results showed that the PPh 21 incentive (Income Tax Ps 21) had no significant effect on tax revenue.

Evaluation of the Implementation of Tax Incentive Policy for Small and Medium Enterprises Affected by the Covid-19 Pandemic at the Tax Service Office Pratama Koja Utara Jakarta

The Covid 19 pandemic in almost all countries, including Indonesia, has negatively impacted the economic sector, especially the MSME business. The government has made various efforts to restore the Indonesian economy. Through the Directorate General of Taxes, under the authority of the Ministry of Finance, the government decided to provide tax incentives for taxpayers affected by the Covid 19 pandemic. This final income tax incentive is based on the Regulation of the Minister of Finance of the Republic of Indonesia No. 44 PMK/03/2020. This regulation focuses on Small and Medium Enterprises. Taxes are usually 0.5% of gross income that is self-paid or deducted or collected by withholders or collectors. However, with PMK-44/PMK.03/2020, the tax is borne by the government, which means that the income is not subjected to tax from April 2020 to December 2020. This study used a descriptive method. The data was collected through a literature study where the author evaluated the implementation of government regulatory policies regarding applying tax incentives for MSMEs affected by Covid-19. The purpose of providing tax incentives to MSMEs is to reduce their difficulty in meeting operational costs or expenses so that MSMEs can survive during the pandemic, as well as save the national economy and maintain financial system stability. The study results show that tax incentives and relaxation and the provision of tax incentives to the beneficiary sector MSME are productive and able to support the recovery of the national economy. These programs and tactical steps ensure that economic growth is maintained even though these programs are separate and unrelated to the spread of Covid-19, which can be controlled quickly.

An Analysis of the Effectiveness of the Policy of Allocation on Income Tax Incentive Covered by the Government in the Context of Handling Corona Virus Disease 2019 (A Case Study of West Bekasi KPP Pratama in 2020)

The background of this study was Pandemic Covid-19 which created some effects on the economic or taxation sectors. Also, it gave an impact on the decline of companies’ income which led to cutting the salaries of many employees and termination of the working relationship. Thus, it required the government to allocate the incentives PPh 21 DTP to relieve the burden on taxpayers and can help restore people's purchasing power. The purpose of this study was to analyze the policy of allocation of PPh 21 DTP incentives in the context of handling Corona Virus Disease 2019 at West Bekasi KPP Pratama based on an analysis of effectiveness, obstacles faced and efforts made to overcome obstacles. This research was descriptive qualitative. The data collection was using observation, documentation, and interviews. The results of this study were that allocating PPh 21 DTP on West Bekasi KPP Pratama was still not effective because many taxpayers did not take advantage of this incentive because of the lack of information and socialization given. This was based on the achievement of objectives, integration, and adaptation. The obstacles encountered were the socialization was less rigorous as many taxpayers were ill-informed, many taxpayers who did not take advantage of the policy well, and the lack of awareness of mandatory taxes by not reporting the realization of the utilization of PPh 21 DTP. Last, the efforts made by KPP Pratama, West Bekasi were to conduct socialization thoroughly and maintain the synergy/cooperation between the KPP and the taxpayers.