The Application of Income Tax Incentives In Accordance With The Minister of Finance Regulation (Pmk)

Indonesia as a developing country is actively involved in various development initiatives. To increase tax revenue, the government consistently strives to enact tax laws and policies that promote investment and business. Indonesia's economy has suffered due to the Covid-19 outbreak. Because this virus has had an effect on the economy, trade and business entities. The epidemic drastically reduced the turnover of every business entity. The rules for providing tax breaks to business owners who are required to pay Covid-19 taxes have been approved by the Minister of Finance. This research is a comparative non-statistical qualitative research that aims to compare income tax calculations. Data in this study was obtained through interviews and documentation. The results showed that there was a tax incentive in 2020 that eased the company in paying income tax in the April-December 2020 tax period. This tax incentive is issued by the government based on PMK No. 44/PMK.03/2020 where companies with revenues less than or equal to IDR 4.8 billion in income tax will be borne by the government as long as this regulation is enforced. PT Yureka Edukasi Cipta received an incentive of Rp2,503,800 and only paid PPH of Rp900,940 to the government. So that in 2020 the company received a net profit after tax of IDR 139,410,860. In 2020 the company received incentives, while in 2021 it did not get incentives because it had almost two times of revenue


INTRODUCTION
Indonesia as a developing country is actively involved in various development initiatives to improve the standard of living of the population.National education must also be improved in order to ensure the opportunity, quality, relevance, and efficiency of education management according to the demands of change (Anta Kusuma & Simanungkalit, 2022).The government consistently seeks to increase tax revenues by enacting tax laws and policies that promote investment and business.People should be aware of their obligations as citizens who are responsible for paying taxes according to the law (Nurhayati & Witono, 2022).
Taxes are levies imposed by law to meet the needs and ensure the prosperity of the people (Warsito & Samputra, 2021).Every year, tax revenue increases and VAT and PPnBM are the main streams of state revenue.Other taxes and income taxes are third and fourth.The government is working to raise taxes and expand the tax base.Indonesia's economy has been hit hard by Covid-19 and the Minister of Finance approved the rules for providing tax incentives for Covid-19 taxable entrepreneurs as well as micro and small enterprises (Fauzi & Apriliawati, 2021).The pandemic reduced trade turnover and income tax revenues were also affected.Income tax is based on annual income and has been amended to provide a fair, transparent, and straightforward taxation system.The government also provides income tax incentives for business actors in the field of education.
Since April 2020, the government paid the last income tax incentive.MSMEs that receive incentives from the government must meet government requirements.According to the finance ministry, taxpayers must apply for a certificate to receive government-funded income tax benefits.19 of 2000) stipulates that "the tax payable is the tax that must be paid, including administrative consequences in the form of interest, penalties, or increases" (Yanti & Ridayanti, 2022).With the determination of the final income tax PMK NUMBER 44/PMK.03/2020,tax payments will be encouraged.Due to Covid-19, businesses are exempt from paying taxes (Lativa, 2021).The tax cut began April 27, 2020.People have trouble paying taxes during recessions.Many businesses don't pay taxes until they're late.This is part of the future business tax bill (Erica et al., 2020).
There are several reasons why MSME taxpayers have not maximized the tax incentives provided by the government.One of them is that businesses with these characteristics experience major obstacles in the field of administration (Hamzah & Widiastuti, 2023).Because, in general, the development of MSMEs starts from individual businesses which, if they develop, are in the form of small and medium scale entities.Many things must be learned in order to make good and correct financial statements.
Tax incentives according to (Kartika and Iswardi 2022:4) aims to "reduce MSME operational costs during this pandemic and socialization by the authorities about tax incentives is very important to support national economic programs and tactical measures to maintain economic growth".
PT. Yureka Edukasi Cipta is one of the educational institutions that provides English tutoring.This tutoring institution is located on Jl.Kemuning, Mangunrejo, Tulungrejo, Kec.Pare, Kediri Regency, East Java 64212.Before the Covid-19 pandemic, this company could pay taxes regularly.After the Covid-19 pandemic, many companies went bankrupt due to declining revenue.
However, the provision of facilities in the form of tax incentives to educational institutions is 1.Details of PT Yureka's Revenue in 2020 and 2021 At PT Yureka Edukasi Cipta there are several programs offered, including Private Online English Class (Listening and Reading), Online Group English Class, TOEFL Preparation, TOEFL ITP, and TOEIC.In 2020, PT Yureka Edukasi Cipta can generate revenue of up to IDR 688,226,000 which comes from the income of various registered programs from January to December.In the income category, English Group Class in January earned the largest income throughout the year, which was IDR 24,950,000, while the lowest gain was in November which was only IDR 4,491,000.In English Group class which only contains a maximum of 2 people per meeting earns the highest income of IDR 3,996,000 in June and the lowest income is in February, May, September, and November which is only IDR 999,000.
In the Toefl Preparation category, the lowest income was in January, which was only Rp8,316,000, while the highest was in March, May, July, and September with an income of Rp13,068,000.In TOEFL ITP, the highest income was in February with an income of Rp21,564,000 and the lowest was Rp10,692,000 in October.For the TOEIC category, the largest income was in April of IDR 14,850,000 and the lowest in January of IDR 9,450,000.
Of the various income categories owned by PT.Yureka Edukasi Cipta, the largest income obtained came from TOEFL ITP, which was Rp. 202,971,000.Furthermore, English Group class with income of Rp. 170,159,000 and followed by TOEIC with a total acquisition of Rp. 151,200,000.The second lowest income is in the TOEFL Preparation and English Private Class categories.In January PT.Yureka Edukasi Cipta earned an income of Rp57,293,000.Meanwhile, the largest revenue was in March and July at Rp63,150,000 and the lowest revenue of this company was in October with a gain of only Rp47,800,000.Until December 2020, the company was able to earn revenue of IDR 57,780,000.regulations, which will be subject to a rate of 0.5% on the company's gross income.It can be seen from the revenue data of PT Yureka Edukasi Cipta above that revenue in 2020 is smaller than in 2021.Revenue in 2020 was 49.88% smaller than in 2021.This is because in 2020 Indonesia is still experiencing a pandemic period so that students who usually register for English learning packages prefer to save their funds for basic school needs.This has a close effect on the decline in the amount of public consumption of daily non-basic needs.In contrast to the company's total revenue in 2021 which can get 2x more than the previous year, which is IDR 1,379,796,000.This has an effect on Indonesia's economic situation which is starting to improve and there is a discourse that schools will be partially offline again.So that students feel they have to catch up with them in English subjects.Source : Data processed, 2023

Calculation of PPH
From the comparison of profit and loss data of PT Yureka Edukasi Cipta above, there are various differences that can be found.The income of this educational institution in 2020 was only around IDR 680,948,000 due to the impact of Covid-19 which suppressed the world and even national economy which also had a negative impact on business in the education sector.However, PT.Yureka Edukasi Cipta was able to increase its income in 2021 by 49.88% so that the amount of income they received was IDR 1,379,796,000.Other income in 2020 and 2021 remained at IDR 0 because this institution only focuses on English courses.So that the gross profit obtained by the company in 2020 and 2021 has the same amount as the revenue they earned.
The total business costs in 2020 and 2021 have a significant difference considering the income they get is also different.In 2020, the company's total costs reached IDR 543,140,000 while the company's total costs in 2021 were IDR 1,077,515,000.
It can be seen quite clearly in the income column of Article 4 paragraph 2 Tax Incentive in period from April to December 2020 which if totaled at IDR 2,503,800.This tax incentive will be the company's other income and will be used for other company needs or needs as well.
Unlike in 2021 where PMK regulation Number 44/PMK.03/2020 is no longer applicable, so companies no longer get tax incentives and companies will pay taxes in accordance with PPH regulation Article 4 paragraph 2, which is to pay 0.5% of gross income to the government.Profit before tax in 2020 is obtained by subtracting gross profit from total operating expenses and adding it with tax incentives of IDR 2,503,800, so that profit before tax in 2020 is obtained at IDR The decline in corporate profits in Indonesia prompted the government to issue a new tax regulation to ease the burden on companies in paying taxes in 2020.So that in early 2020 the government agreed to issue PMK No. 44 / PMK.03 / 2020 which began to be enforced during the tax period from April to December 2020.
PMK tax regulation No. 44/PMK.03/2020 is also applied by PT.Yureka Edukasi Cipta to ease their burden in paying taxes by the government.This institution receives a tax incentive of Rp2,503,800 calculated from the value of 0.5% of gross income and is included in the category of income less than Rp4.8 billion per year.The tax incentive value of IDR 2,503,800 is enough to provide relief for companies where the company also experienced a decrease in annual profit in 2020 when compared to the profit obtained in 2021.The value of this tax incentive is used by the company to cover operational needs in that year, so it can be categorized as the company's other income.
The tax incentive obtained by the company in 2020 makes the company only have an income tax burden to be paid of IDR 900,940.This tax amount can be said to be quite small when compared to the tax burden in 2021 which reached IDR 17,033,120.The tax burden in 2021 has increased sharply because PMK regulation No. 44/PMK.03/2020 is no longer enforced and companies are ordered again to pay income tax at 0.5% of gross income.
The burden of different tax payments in 2020 and 2021 also had a significant impact on the company's net profit in that year.In 2020, the company only paid taxes of IDR 900,940 so that the company's net profit could get IDR 139,410,860.Meanwhile, the tax burden in 2021 was quite large, reaching IDR 17,033,120 so that the company's net profit was around IDR 285,247,880.
Although it can be said that the amount of profit in 2020 is smaller than in 2021, the application of PMK No. 44 / PMK.03 / 2020 is enough to provide relief for PT Yureka Edukasi Cipta which is classified as a company with less income from or equal to Rp4,8Billion per year.So that taxes that should be borne by companies to be paid to the government can be borne by the government itself in the form of providing tax incentives.
This study did not use income tax payable because the company has paid final income tax.If a company has paid final income tax, then the company is not obliged to pay income tax at the end of the year.The year-end report of PT Yureka Edukasi Cipta is only calculated based on total gross income minus total operating expenses so that the amount of profit before tax and profit after tax will be obtained if reduced by income tax article 4 paragraph 2 that has been paid for a year.
wastu.unmerbaya.ac.id/index.php/wastu/indexAlamat: JL.Ketintang Madya VII/2 Surabaya PMK No. 44/PMK.03/2020 is valid from April 2020 to December 2020.So that the tax period in January -December 2021 will be re-enforced by Article 4 paragraph 2 of PPH The following is the result of the calculation of PPH Article 4 Paragraph 2 during the tax period January 2020 to December 2020 which will be divided into 2 different tables, namely before the enactment of PMK Number 44 / PMK.03 / 2020 during the January -March 2020 tax period and when the regulation was enacted during the April -December 2020 tax period.
wastu.unmerbaya.ac.id/index.php/wastu/indexAlamat: JL.Ketintang Madya VII/2 Surabaya Taxpayers, including those who already have a certificate before this Ministerial Regulation, can apply to the Director General of Taxes for a new certificate.The procedure for submitting applications and issuing certification is regulated in Minister of Finance Regulation 23 of 2018.Article 1 Number 8 of the Law on Tax Collection with Letters of Compensation (Law No.

Table 1
Revenue Comparison in 2020 and 2021

Table 4
Final PPH Value for the January -March 2020 Tax Period Before PMK Number ISSN :

2685-9696 (Online) -2686-0678 (Print) Faculty of Economics, Merdeka University Surabaya Link Jurnal: http://wastu.unmerbaya.ac.id/index.php/wastu/index Alamat: JL. Ketintang Madya VII/2 Surabaya
If table 4 and table 5 are combined into 1 part, it will form table 6 above which contains all data on the company's gross income from January to December 2020.The impact of Covid-19 made the company only able to obtain gross revenue of Rp63,150,000 in March and July with a PPH value paid of Rp315,750.The lowest income of PT Yureka Edukasi Cipta occurred in October, which only earned a gross profit of Rp40,522,000 with PPH of Rp202,610.

Table 5 .
Profit and Loss Comparison Table of PT.Yureka Copyright Education 2020-2021

table 4
.8 above.In 2020, PT.Yureka Edukasi Cipta submits tax incentives written in PMK Number 44/PMK.03/2020 to the government for the suspension of tax payments during the tax ISSN :

2685-9696 (Online) -2686-0678 (Print) Faculty of Economics, Merdeka University Surabaya Link Jurnal: http://wastu.unmerbaya.ac.id/index.php/wastu/index Alamat: JL. Ketintang Madya VII/2 Surabaya reached
140,311,800.Meanwhile, profit before tax in 2021 is IDR 302,281,000.The difference in the amount of profit before tax in 2020 and 2021 is 48.84%,where the profit obtained is greater in 2021 because the income obtained by the institution is also greater than the year previously.The PPH paid by PT Yureka Edukasi Cipta in 2020 is smaller than in 2021.The income tax that must be paid by the company in 2020 is only around IDR 900,940 which is added from taxes from January to March 2020 (before the enactment of PMK Number 44/PMK.03/2020).Meanwhile, the amount of PPH to be paid by the company in 2021 reached IDR 17,033,120.The company's net profit was recorded in 2020 after deducting income tax was IDR 139,410,860 while the company's profit after tax in 2021 was IDR 285,247,880.The implementation of work from home, PSBB, and face-to-face learning affects the income or income of PT.Yureka Edukasi Cipta in that year.So that profit before tax in 2020 only IDR 140,311,800 and in 2021 the company can get profit before tax almost twice as much as in the previous year, which was IDR 302,281,000.