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THE ANALYSIS OF TAX PLANNING IMPLEMENTATION ON INCOME TAX

ACCORDING TO ARTICLES 21 ABOUT EMPLOYEE


IN EFFORT OF TAX EXPENSE EFFICIENCY
CV LOYALITAS IN DENPASAR

Ni Wayan Arum Kasernaveni


Accounting Departement Bali State Polytechnic, Kampus Bukit Jimbaran, Badung,
Bali 80361, Indonesia

Email:
Abstract. Based on the results of the research and discussion it can be concluded that
applying the gross up method or increasing the gross amount of a payment to account
for deductions providing compensating when compared with the application of net
method and gross method. Because the cost of income tax in articles 21 for employee
can be charged economically. Savings of the income tax by the participant in debt in
2017 amounting to Rp. 9.982.419,00. However, as a result of changing the pleasure
(reward) into allowance, the company had to pay more of the income tax as much as Rp.
6.581.128,00 according to articles 12. Due to this fact, the amount of income tax saving
after the increase of income tax based on articles 21 is Rp.3.401.291,00. CV Loyalitas
should change the calculating method of income tax deduction of articles 21 from net
method which is borne into the gross up method that gives allowance. Furthermore,
another profit gained by CV Loyalitas is the benefit towards the company employees as
the take home pay that accepted doesn’t go through deduction, therefore the welfare of
the company employees is guaranteed.

1. Introduction
One of the efforts to save the tax legally can be done through tax management which is the
tax planning (Suandy: 2011). Tax is a company expense which decrease the net profit. When doing
the tax management, the purpose is to reduce the tax expense as small as possible.
The tax planning that can be done by a company is tax planning on income tax. In saving
the taxes, especially the income tax for personal and corporate use can be done with tax planning
on the cost related to employee welfare. The suitability of income tax deduction method according
to articles 21 can be seen from the subject that will bear the burden of the taxes
There are some methods that can be used to collect the income tax according to Articles
21 about employee presented by Pohan (2013: 76) The first method is gross method, net method,
and gross up method. By choosing and applying the income tax deduction method according to
Articles 21 suitably with the principle of who’s going to bear the tax burden, it is expected that it
can give an alternative to a company in their tax planning thus can help the efficiency of tax burden
on corporate or company either legally or according to the applicable regulations.
In this research, the object of the research is a company namely CV Loyalitas which located
in Denpasar, Bali. This company engaged in trading, including trading intraregional and business
as supplier, grosser, and distributor. The amount of income tax according to Articles 21 is Rp
287.494.450. Income tax in Articles 21 is borne by the company. The income tax fee cannot be
charged in profit/loss report, therefore the income tax paid by the company is still classified as
large amount as much as Rp 444.428.184,00. The problems that occurred in the company is the
management division does not know the steps in carrying out the tax planning; according to the
interview result that had been conducted, hence the writer recommended the application of income
tax planning according to Articles 21. Income tax planning according to Articles 21 about
employee for CV Loyalitas is needed to be done so that in the next year (2018), company can
minimalize the tax burden and maximized the profit.
According to the explanation above, the writer was interested in conducting a research
entitled “THE ANALYSIS OF TAX PLANNING IMPLEMENTATION ON INCOME TAX
ACCORDING TO ARTICLES 21 ABOUT EMPLOYEE IN EFFORT OF TAX EXPENSE
EFFICIENCY IN CV LOYALITAS IN DENPASAR”

2. Theoritical background and method analysis


a. Tax Planning
According to Pohan (2013:13) tax planning is “Effort that included the tax planning thus
the taxes paid by the company are really efficient”. Therefore, to realize the tax planning one
needs the right strategies especially the calculation of tax income according to Articles 21
namely gross method, net method, and gross up method. Pajak Penghasilan Pasal 21
According to regulation from Director General of Taxes Number: PER / 16 / PJ / 2016
Income Tax according to Articles 21 is taxes on income in the form of salaries, wages,
honoraria, allowances, and other payments in any name and form related with job or
occupation, service, and another activity conducted by a person which is the subject of
domestic tax.
b. Permanent Employee
The definition of permanent employee according to PER/16/PJ/2016 is employee that
received or earned a certain amount of income regularly, including commissioners and
supervisory board members, as well as employees who work on a contract for certain period of
time that received or earned income in certain amount regularly.
Data that is used in this research is quantitative data, which is the list of employee salary
in 2017 also the finance report in form of profit/lose report in 2017. On the other hand, the
qualitative data in this research is the information about the implementation of tax planning
through unstructured interview.
The technique of collecting data in this research are observation, documentation, and
interview. The first step in this research is direct observation to the company, to observe the
condition of the employee salary in CV Loyalitas. Documents related to the research are taken
from the profit/loss report in 2017, list of employee salary in 2017, short history on the
organization structure, and job description of CV Loyalitas. The interview method that is used
is unstructured interview by asking several questions to the company leader as to gain
information about the tax planning implementation in CV Loyalitas. The Technique of
analyzing data in this research is descriptive quantitative. Descriptive quantitative technique
is a technique in collecting, analyzing, and to see how the implementation of income tax
planning according to Articles 21 about employee in effort of tax efficiency in CV Loyalitas
Denpasar.

3. Result and discussion


3.1 Income Tax According to Articles 21 borne by employee (Gross Method)
Table 1 showed the recapitulation on the calculation of income tax according to Articles 21
borne by employee (gross method) in CV Loyalitas in 2018

TABLE 1
RECAPITULATION ON THE CALCULATION OF INCOME TAX ACCORDING TO ARTICLES
21
TABLE 4.2
RECAPITULATON ON THE CALCULATION OF INCOME TAX ACCORDING TO ARTICLES 21
CV LOYALITAS
IN 2017
GROSS METHOD

Information Total
Sallary 2.824.200.000
The Allowance of Social Insurance Administration Organization 232.714.080
Religious Holiday Allowance 282.420.000
Gross Income 3.339.334.080
Deduction:
- Sallary Fee 149.376.552
- Sallary Bonus Fee 14.121.000
Source: Secondary Data (Attachment 1)

It can be seen from the calculation of gross method, the total of income tax according
to Articles 21 that will be borne by the employee or deducted from employee salary is Rp
38.295.150,00 therefore, with the existence of income tax burden in Articles 21 resulted in
the decreased of employee salary. This give an air of burdensome to the employee as the
salary given will be deducted according to income tax in Articles 21. However, if it is seen
from company point of view/ employer, there are not income tax listed in Articles 21. The
company only obliged to deposit and report the income tax on the salary deduction of the
employee according to Articles 21.
3.2 Income Tax According to Articles 21 borne by Company (Net Method)
Table 2 showed the recapitulation on the calculation of income tax according to Articles 21
borne by company (net method) in CV Loyalitas in 2018

TABLE 2
RECAPITULATION ON THE CALCULATION OF INCOME TAX ACCORDING TO ARTICLES
21

Tunjangan BPJS 232.714.080


THR 282.420.000
Penghasilan Bruto 3.339.334.080
Pengurang :
- Biaya Jabatan Gaji 149.376.552
- Biaya Jabatan Bonus 14.121.000
Total Biaya Jabatan 163.497.552
Iuran JHT 160.979.400
Total Pengurang (324.476.952)
Penghasilan Neto Setahun/Disetahunkan 3.014.857.128
PKP 541.075.000
PPh Pasal 21 Setahun 38.295.150

Source: Secondary Data (Attachment 2)

It can be seen from the calculation of net method the amount of income tax according
to Articles 21 is the same as the gross method which is Rp 38.295.150,00, however the
different showed when using the net metod on income tax according to Articles 21 borne by
the company/employer seen through employee point of view there are not income tax listed
in Articles 21. Commercially, the amount that can be deducted as a cost, but on a fiscal basis
the amount cannot be deducted as a fee (non-deductible) because it is part of the enjoyment
given to employees by the company.
3.3 Income Tax According to Articles 21 given in form of Allowances (Gross Up Method)
Below is the example of the calculation of income tax according to Articles 21 of one of the
employees in CV Loyalitas with the distribution in form of full allowance (gross up) realized
in two steps

TABLE 3
TAX CONSTRUCTION FORM WITH GROSS UP METHOD ACCORDING TO
Income Tax Law NUMBER 36 OF 2008
Layer Taxable Entrepreneur Allowance Formula of
Income Tax
I Rp. 1 s/d Rp. 50.000.000 1/0,95 (PKP x 5%)
II Rp. 50.000.000 s/d Rp. 250.000.000 1/0,85 {(PKP x 15%) - 5 juta}
III Rp. 250.000.000 s/d Rp. 500.000.000 1/0,75 {(PKP x 25%) - 30 juta}
IV Rp. diatas Rp. 500.000.000 1/0,70 {(PKP x 30%) - 55 juta}
Source: Pohan, 2013