A Certain Entrepreneur Individual Taxpayer is an Individual Taxpayer conducting business as a retail merchant with 1 (one) or more places of business. They are required to apply for a Taxpayer Identification Number (TIN) for each place of business at a Tax Office (KPP) whose working area covers the place of business.
The retail merchant as referred above means an individual that:
a. sells goods, both wholesale and retail;
b. delivers services in a place of business.
The Article 25 Income Tax installment for a Certain Entrepreneur Individual Taxpayer is 0.75% of their monthly gross income from each place of business, which can be credited at the end of the Tax Year.
The payment due date is no later than the 15th (fifteenth) day of the month immediately following the end of the Tax Period.
Residence and place of business are in the same Tax Office area
Mr. Nunu has a residence and a place of business as a retail merchant in one Tax Office area. In June 2019, his business turnover is Rp50,000,000.
The calculation is as follows:
0.75% x (gross income/turnover/gross sales/gross revenue)
0.75% x Rp50,000,000 = Rp375,000.
The amount can be used as a tax credit in Mr. Nunu’s tax calculation at the end of the Tax Year.
Residence and place of business are in a different Tax Office area
Mr. Nana has a residence in Tax Office A area and a place of business as a retail merchant in Tax Office B area. Therefore, he is required to register with Tax Office A for his domicile TIN and also with Tax Office B for his branch/place of business TIN.
He has an obligation to pay Article 25 Income Tax to Tax Office B only, while he files his Annual Tax Return with Tax Office A.
The calculation is as follows:
0.75% x (gross income/turnover/gross sales/gross revenue)
0.75% x Rp100,000,000 = Rp750,000.
The amount can be used as a tax credit in Mr. Nunu’s tax calculation at the end of the Tax Year.
His business turnover in Tax Office B area is Rp100,000,000.
Residence and place of business are in more than one Tax Office area
Mr. Thor has a residence in Tax Office A area, 2 places of business as a retail merchant in Tax Office B area, and 1 place of business in Tax Office C area.He chooses not to be subject to Final Income Tax under the Government Regulation No. 23 of 2018.
Therefore, his obligations are as follows:
a. Register with Tax Office A for his domicile TIN;
b. Register with Tax Office B for his 2 branch TINs;
c. Register with Tax Office C for his 1 branch TIN;
d. Pay Article 25 Income Tax on each place of business to Tax Offices B and C, respectively.
The calculation is as follows:
Location | Monthly | Article 25 Income Tax |
Business 1 in Tax Office B area | Rp50,000,000 | Rp375,000 |
Business 2 in Tax Office B area | Rp100,000,000 | Rp750,000 |
Business 3 in Tax Office C area | Rp200,000,000 | Rp1,500,000 |