Comparative Analysis of Calculation of Income Tax Article 21 and Zakat

Authors

  • Tutut Adiningsih Tazkia Institute
  • Ronan Roby Cahyandi Tazkia Institute

DOI:

https://doi.org/10.21111/al-iktisab.v3i2.3911

Keywords:

Income Tax Article 21, Gross Method, Net Method, Gross-Up Method, Company Profit, Zakat

Abstract

The purpose of this paper is to examine the comparison of Article 21 Income Tax calculations using the gross method, the net method, and the gross-up method to find out which method is most profitable for company profits. This study uses similar comparisons that were made for the calculation of zakat, which also used 2 (two) methods, namely the net and gross methods. Data on employee salaries used in this study are secondary data obtained from PT. Sinar Abadi Pratama Sejahtera in 2018. The analytical method used in this study is a descriptive analysis with a qualitative approach. The findings in this study are to show that of the three methods of calculating Article 21 Income Tax, the most significant profit is the gross-up method. As for the calculation of zakat, which is beneficial for zakat payers is to use the net method. Calculation of Income Tax Article 21 gross-up method, produces the smallest corporate income tax while still meeting the tax requirements. Employees enjoy the benefits of receiving income tax benefits so that they can receive a full salary. On the net zakat calculation method, the zakat calculation is smaller than if using the gross method.

References

Burhanudin, and Desi Lisdiana. “Comparative Analysis of Gross Up and Net Methods as PPh21 Tax Planning Against Pre-Tax Profit at PT Wahana Ottomitra Multiartha Tbk (WOM Finance).” Journal of Accounting, Vol. 2 No. 1, 2015.

Hidayatullah, Arif, and Anita Priantina. “Zakat Management Integration Towards in Indonesia: Problem and Solution.” Ahkam-Journal of Sharia, Vol. 18 No. 2, 2018.

Income Tax Article 21 Calculation Method Gross, Net, Gross-Up & Non-Gross-Up. Source: http: //hr-qu.com/news/method-calculations-pph21-gross-net-gross-up-non-gross-up.html.

Kep. 545/PJ/2000 Concerning Guidelines for Implementing Withholding, Depositing and Reporting of Income Tax Article 21 and Article 26 Regarding Work, Services and Personal Activities.

Kep. Director General of Tax No. 31/PJ./2008.

Law No. 36 of 2008, The 4th Amendment to Law No. 7 of 1983 Concerning Income Tax.

Law Number 38 of 1999 Concerning Management of Zakat.

Mardiasmo. Letter of Notification, Diseases of Aquatic Organisms. Vol. 10 No. 1, 2011. Source: https://doi.org/10.1577/1548-8667(2001)013

---------. Taxation, Revised Edition. Yogyakarta: Andi Offset, 2010.

---------. Taxation, Revised Edition. Yogyakarta: Andi Offset, 2011.

Marimin, Agus, and Tira Nur Fitria. “Professional Zakat (Zakat of Income) According to Islamic Law.” Scientific Journal of Islamic Economics, Vol. 01 No. 01, 2015.

Mayasari, Risa. "Analysis of The Application of Gross Up Method in Calculation of Income Tax 21 as One of The Tax Application Strategies at SPPBE of PT.Trijaya Adymix Jombang." 2017.

MUI Fatwa Number 3 of 2003 Concerning Zakah on Income.

Mulyono, D. Tax Law, Concepts, Applications and Practical Guidance. Yogyakarta: Andi Offset, 2010.

Official, S. Taxation Practicum Module, Book 2, Series 6. Jakarta: Selemba Empat, 2009.

---------. Taxation Theory and Cases, Book 7, Edition 7. Jakarta: Selemba Empat, 2013.

---------. Taxation Theory and Cases. Jakarta: Selemba Empat, 2014.

Priantara, D. Indonesian Taxation, Issue 2. Jakarta: Media Discourse Partner, 2012.

Qardawi, Yusuf. Zakat Law Comparative Study Regarding The Status and Philosophy of Zakat Based on The Qur'an and Hadith (Translation of The Book of Fiqhuz-Zakat). 2011.

Rachmawati, Susan, and Susi Susilowati. “Analysis of Income Tax Management Article 21 Using Gross Up Method in an Effort to Increase SME Profitability." EMBA Journal, Vol 2 No. 3.

Regulation of the Director General of Taxes in Per-64/PJ/2009, Concerning Determination of The Amount and Time of Income Tax Withheld by The Government for Income in The Form of Early Termination Compensation for Exclusive Rights of PT Telekomunikasi Indonesia Persero (Tbk).

Regulation of The Directorate General of Taxes Number: Per-31/PJ/2009 Concerning Technical Guidelines for Procedure for Withholding, Depositing and Reporting of Income Tax Article 21 and/or Income Tax Article 26 Regarding Work, Services, and Activities of Individual Persons.

Runtuwarow, R., and I. Elim. “Analysis of The Application of Income Tax Accounting Article 21 for Salaries of Civil Servants in The Plantation Service of North Sulawesi Province.” EMBA Journal, Vol. 4 No. 1, 2016.

Sugiyono. Business Research Methods. Bandung: Alfabeta, 2009.

---------. Qualitative Quantitative Research Methods and R&D. Bandung: Alfabeta, 2009.

Sunyoto, D. Accounting Research Methodology. Bandung: PT Refika Aditama, 2013.

Suparmono, and Damayanti Theresia Woro. Indonesian Taxation. Yogyakarta: Andi Offset, 2010..

Suparmono. “Types of Notification Letters According to Suparmono.” Vol. 60 No. 4, 2010. Source: https://doi.org/10.1093/occmed/kqq062

Waluyo. Indonesian Taxation, Vol. 2. Jakarta: Selemba Empat, 2009.

---------. Indonesian Taxation. Jakarta: Selemba Empat, 2011.

Zailia, Siti. “Zakay (A'rudz al-Tijara) Determination and Calculation Method According to Fiqh and The National Amil Zakat Agency (BAZNAS).” Nurani, Vol. 16 No. 1, 2016.

Downloads

Published

2019-11-01

How to Cite

Adiningsih, Tutut, and Ronan Roby Cahyandi. 2019. “Comparative Analysis of Calculation of Income Tax Article 21 and Zakat”. AL-IKTISAB: Journal of Islamic Economic Law 3 (2). https://doi.org/10.21111/al-iktisab.v3i2.3911.

Issue

Section

Articles