Jakarta, PWYP Indonesia – An institution’s compliance with tax provisions set by the State reflects good and accountable institutional managerial. The seriousness of compliance with tax rules is also applied as an institutional priority agenda, including the mandate to increase the capacity of coalition organizations to apply tax rules properly.

As a follow-up to the Series IV Non-Profit Organization Financial Management and Strategy Training “Taxation for Non-Profit Organizations” held on March 21-23, 2022, PWYP Indonesia held the inaugural Coaching Clinic, which deepened the topic of Taxation for Non-Profit Organizations. Sri Sudarsih, a Tax Specialist at PWYP Indonesia, presented the material and was assisted by PWYP Indonesia’s Finance Manager, Nerawati.

The implementation was carried out online through the Zoom channel on July 21, 2022. Coalition member organizations present at this activity included FITRA Riau, ICEL, SOMASI NTB, Akar Foundation, YASMIB Sulawesi, POKJA30, WALHI NTB, GeRAK Aceh, MaTA, IDEA Yogyakarta, IESR, and PADI Indonesia. This Coaching Clinic aims to share knowledge, learning, and experience and deepen material and tax technical assistance for participants from PWYP Indonesia coalition members.

The material discussed in this Coaching is Income Tax 21 for Individuals, Income Tax 23, Income Tax Article 4 Paragraph 2, and Corporate Income Tax. Transactions that often occur in non-profit organizations include the four materials above so that a more in-depth discussion is needed. Income Tax 21 for Individuals is reviewed again regarding the new tariff layers that come into effect in 2021. It must be remembered and noted because the rate determines the permanent income workers, contracts, and consultants will receive. Passive and active income such as dividends, interest, royalties, prizes, awards, rent for the use of movable property, and compensation for certain other services are included as Income Tax 23 and have different rates of 15% and 2%. Income Tax Article 4 Paragraph 2 explains the rates and objects of final deductions such as income from the rental of land and/or buildings, lottery prizes, construction services, and transfer of rights to land and/or facilities. The last material discussed was Corporate Income Tax regarding the calculation and form of tax reports (Annual Income Tax Return).

Corporate Income Tax became the most exciting topic in this Coaching Clinic session. SPT 1771 is explained in detail about the procedures for filling it out. The participants were also given space to share their experiences regarding taxation obstacles that coalition members have faced. Delayed payment of Corporate Income Tax became a lesson for participants because one of the PWYP Indonesia coalition organizations had experienced this obstacle. In the end, the DGT sent a Tax Collection Letter with a fine listed.

Meliana Lumbantoruan, the Program Manager, said that if coalition members need assistance regarding the tax implementation process, PWYP Indonesia is ready to provide valuable service. The question and answer session and experience sharing went well and received enthusiasm from the coalition members. This Taxation Coaching Clinic session is expected to be a forum for coalition members to understand better and be able to apply tax rules in their respective institutions. (SR/CRA/ML)