Saturday, July 30, 2011

Non-taxable income and the cost of office

On this occasion I will explain the basic things you need to know in calculating income tax, including the non-taxable income and official expenditure. In principle, in calculating personal income tax are:
(Net income - non-taxable income) x rate
Net income is calculated from the gross income minus the cost of office and pension (if any).
* note: pension contributions are used as a deduction from gross income is thedues paid by an individual / employee to the pension fund, if the pension contributions paid by employers is not included as a deduction.
Cost of Office
The cost of office is used to reduce the gross income of permanent employees who are still actively working. This is a government policy for every person whose income would have cost. for example, transport costs from home to work place. Based on the Ministry of Finance Decree No. 250/PMK.03/2008 are 5% of gross income or a maximum Rp. 500,000 per month or 6 million per year, select the smallest based on years of service.
The cost of office attached to the company work. If someone is working as permanent employees in two places or more, then the cost of office is only deducted once on one of his workplace.
(to be continued)

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