Tax Component

Define how payroll components are treated in Indonesian income tax (PPh 21/26) calculations.

Purpose:

• Map payroll components to tax calculation rules
• Ensure correct taxable income determination
• Support different tax treatment per income type
• Comply with PMK 168/2023 and tax regulations
• Enable accurate tax reporting (SPT Masa PPh 21)

Access: Superadmin and Client Admin only

Why Restricted: Incorrect tax configuration causes compliance violations and penalties.

Tax Treatment Types:

Treatment	Description	Examples
Taxable Income	Included in gross taxable income	Base salary, allowances, bonuses, overtime
Non-Taxable Income	Excluded from taxable income	Reimbursements (with receipts, within limits)
Tax Deductible	Reduces taxable income	BPJS employee portions, pension fund, zakat
Non-Deductible	Doesn't affect taxable income	Loan repayments, penalties, fines

Common Tax Component Mappings:

Regular Income (Taxable):

• Base Salary → Taxable ✅
• Fixed Allowances (transport, meal, housing) → Taxable ✅
• Variable Allowances → Taxable ✅
• Bonuses (performance, annual) → Taxable ✅
• Overtime → Taxable ✅
• Commissions → Taxable ✅

Non-Taxable Benefits:

• Reimbursements with receipts (within limits per PMK) → Non-Taxable ❌
• Certain allowances per PMK 168/2023 → Non-Taxable ❌

Tax Deductible (Reduce Taxable Income):

• BPJS Kesehatan Employee → Deductible ✅
• BPJS Ketenagakerjaan Employee (JHT, JP) → Deductible ✅
• Pension Fund (approved by Menteri/OJK) → Deductible ✅
• Zakat (paid to official Badan Amil Zakat) → Deductible ✅

Non-Deductible:

• Loan/Advance Repayments → Non-Deductible ❌
• Late Penalties/Fines → Non-Deductible ❌
• Unpaid Leave Deduction → Non-Deductible ❌ (handled via prorata)

Fields:

Field	Type	Description
Tax Component Code	Text	Unique identifier
Tax Component Name	Text	Display name
Tax Treatment	Dropdown	Taxable/Non-Taxable/Deductible/Non-Deductible
Regulation Reference	Text	PMK/regulation basis
Description	Text	Detailed explanation
Active	Toggle	Enable/disable

How to Configure:

1. Navigate to Payroll Component > Configuration > Tax Component
2. Click Insert button
3. Fill Tax Component Code and Name
4. Select Tax Treatment type
5. Enter Regulation Reference (e.g., "PMK 168/2023 Pasal 12")
6. Add Description explaining tax treatment
7. Set Active = Yes
8. Click Save

Mapping to Payroll Components:

After creating tax components, map them to payroll components:

1. Open payroll component (Earnings/Deductions)
2. Select Tax Component from dropdown
3. System applies tax treatment automatically during payroll calculation

Best Practices:

• Always document regulation reference
• Consult tax professional for complex cases
• Update when tax regulations change
• Test with sample payroll before production
• Review quarterly for compliance

Warning:

• ⚠️ Incorrect tax configuration = compliance violations
• ⚠️ Potential penalties from tax authority (DJP)
• ⚠️ Employee tax issues at year-end (SPT)
• ⚠️ Always verify with PMK 168/2023 or current regulation

Regulation References:

• PMK 168/2023: Income Tax Article 21 regulations
• PP 68/2009: Calculation of PPh 21 and PPh 26
• BPJS Regulations: For statutory deductions treatment
• Consult DJP (Direktorat Jenderal Pajak) for clarification