What Is PKP? Employers Must Know!

Illustration. (Photo: Unsplash)

YOGYAKARTA - When asked what PKP is, of course what is in your mind? Is it similar to the abbreviation in the agency? Or is it short for work?

So PKP itself stands for Taxable Entrepreneurs. Generally, every entrepreneur or entrepreneur who has studied in the business world will understand this...

According to Law Number 16 of 2000, PKP (Taxable Entrepreneurs) is an entrepreneur who carries out the delivery of Taxable Goods and/or the delivery of Taxable Services which are taxed according to the 1984 Point Added Tax Law and its amendments. This does not include Small Entrepreneurs whose limits are determined by the Decree of the Minister of Finance.

How are the requirements for applying for PKP?

To get the inauguration of Taxable Entrepreneurs from the Directorate General of Taxes, an entrepreneur/business/companion should meet the following requirements:

Having a gross income (omzet) in 1 year the book earned IDR 4.8 billion. Excluding entrepreneurs/businesses/companies with gross income of less than IDR 4.8 billion, apart from that entrepreneurs chose to be confirmed as Taxable Entrepreneurs.

Through the implementation of a questionnaire run by KPP or KP2KP registration area

Complementing the document and the (prerequisites) for the PKP submission or PKP confirmation.

The application to become a Taxable Entrepreneur is submitted to the KPP or KP2KP whose working area includes residential areas, position areas, or business activities of taxpayers.

Who is required by PKP?

Small entrepreneurs are every entrepreneur whose business sector is under IDR 4,800,000,000 in 1 year. This type of entrepreneur is not required to register PKP.

On the other hand, if a businessman has a turnover greater than 4,800,000,000, then he is required to register. Small entrepreneurs in their regulations should not register for PKP and businesses that are carried out consistently officially to continue.

Obligations when Registered PKP

When the entrepreneur has been confirmed as a Taxable Entrepreneur, therefore he has some importance, namely:

ISSUE Tax Invoices for each Taxable Goods Delivery and/or Taxable Services

Depositing underpayment VAT by applying a Tax Deposit Letter (SSP) to the Post Office or Perception Bank no later than the end of the following month before reporting the VAT Period SPT.

Report Taxable Goods, Non-Taxable Goods, Taxable Services and Taxable Services to the Tax Service Office by applying the VAT Period SPT no later than the end of the following month.

So after knowing what PKP is, watch other interesting news on VOI, it's time to revolutionize news!