Understanding PPh Final: Concept, Definition, and Application

PPh Final is a type of income tax that is levied on specific earnings with a predetermined rate and is withheld when the income is received. It is not included in the six general tax categories listed in the Government Finance Statistics Manual. This distinction gives PPh Final a unique position compared to regular income taxes.

The OECD defines the final tax as a condition where the right to tax is determined by tax treaties, allowing the source country to apply a lower rate that becomes final. The IBFD describes it as a withholding tax applied to certain incomes such as dividends, interest, or royalties, after which the taxpayer has no further reporting obligation. Both definitions emphasize its finality.

The book “Konsep dan Aplikasi Pajak Penghasilan Edisi Kedua” details the theory behind PPh Final, covering concepts like schedular taxation, ring fencing, presumptive tax, and withholding tax mechanisms. It serves as a comprehensive reference for students, tax academics, and practitioners seeking to understand Indonesia’s income tax policy and practice. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/literasi/buku/1814662/memahami-sekilas-konsep-pph-final).