In March 2022, the big MotoGP world event at the Mandalika Circuit, West Nusa Tenggara (NTB), was held. In addition to the success in holding the event, Indonesia has also been made viral by the presence of the rain handler who appeared in the world racing event. From the mass media, it was known that the rain handler was employed for 21 days and received payment for the services he had performed.
Quoted from finance.detik.com (22 March 2022), that the Special Staff of the Minister of Finance Yustinus Prastowo stated that the rain handler’s services are tax payable. This means that the employer is obliged to withhold income tax (PPh) Article 21.
The rain handler service is unique and some Indonesians still use this service. So, is it true that income from the services of a rain handler can be taxed? If so, which category does this service fall into?
Object, Subject and Taxpayer
Before we start the discussion, it’s a good idea to first identify what is the object of Article 21 Income Tax. According to the Income Tax Law, income is in the form of salaries, wages, honorarium, allowances, and other payments by name and in any form in connection with the work or position, services, and activities carried out by individual domestic Tax Subjects.
After discussing the object, we can conclude that the income received by the rain handler is an income tax object so it can be taxed. Next, we need to describe what is meant by domestic Tax Subjects.
Domestic tax subjects are individuals or entities that have been determined by the tax laws and regulations in force in Indonesia. In this case, the rain handler profession that is run by individuals is a domestic tax subject.
Then what is meant by taxpayers are individuals or entities, including taxpayers, tax cutters, and tax collectors, who have tax rights and obligations in accordance with the provisions of tax laws and regulations. . And the rain handler can be said to be the income recipient (tax payer), while the 2022 MotoGP organizer in Indonesia is the income provider, hereinafter referred to as the rain handler PPh cutter.
VAT withholding and Income Recipient Category
After knowing the definition of object, subject and taxpayer, we also need to understand that withholding income tax is defined as an individual taxpayer or corporate taxpayer, including a permanent establishment, which has the obligation to withholding tax on income in connection with work, services, and activities of individuals as stated in the Income Tax Law.
Recipients of income withholding Article 21 income tax there are several categories. The category that corresponds to the rain handler profession is non-employee income recipients.
Based on the Regulation of the Director General of Taxes number PER-16/PJ/2016, what is meant by non-employee income recipients are individuals other than Permanent Employees and Non-Permanent Employees/Freelancing Workers who earn income in any name and in any form from withholding income tax as compensation for services performed based on orders or requests from the income provider.
Thus the rain handler can be included in that category because he is an individual who is employed on a freelance basis or only contracted during the event and is not continuous and certainly earns income from income tax deductions for services carried out according to the request of the cutting party.
Basic Withholding and Calculation of Taxes
After getting to know some definitions of taxation, we also need to know the basis for withholding and calculating taxes.
Based on PER-16/PJ/2016, the basis for withholding Income Tax Article 21 for this category of income is 50% of the total gross income minus PTKP (non-taxable income) per month . This deduction is stated in the withholding receipt which must be reported annually as a tax deduction (tax credit) by the taxpayer.
If the taxpayer does not have an NPWP, then the withholding tax must make a 100% higher deduction than the one with a TIN.
PTKP per month is :
1. IDR 4,500,000.00 for individual taxpayers,
2. Additional IDR 375,000.00 for married taxpayers, and
3. An additional Rp375,000.00 for each blood family member and the same-sex family in a straight line and adopted children, who are fully dependent, for a maximum of three people for each family.
After getting the withholding evidence, the taxpayer must report his income through the Annual SPT using the Net Income Calculation Norm (according to PER-17/PJ/2015) if it is included as an individual taxpayer who does independent work whose gross turnover in one year is less than Rp4 .8 billion and required to keep records.
So it can be concluded that the basis for calculating tax per year for the rain handler profession is income according to the norm which is reduced by PTKP per year, then multiplied by the individual tax rate. After that it is deducted by a tax credit that has been deducted by the withholding income tax.
Sumber https://pajak.go.id/id/artikel/aspek-pajak-profesi-pawang-hujan/b>