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Indonesian Taxation
Author: Bruno Reference Number: AA-08196 Views: 22 Created: 2018-05-18 09:42 Last Updated: 2018-05-18 09:42 0 Rating/ Voters

Introduction

·        EPE Indonesia version shall implement the Taxation in the Payroll module as it requires monthly processing together with the Pay processing.


Income Tax Detail

  • It is designed in another setup screen as to avoid impact to Employment Details.
  • No of Dependent can be gathered from Family Module where the system will count for Son, Daughter, Step Son and Step Daughter.
  • Each Personnel can have different Tax Policy and blank field indicates no taxation computation for this personnel.
  • Tax Processing Method is enabled if Tax Policy is provided else blank and read only. Available methods are: Gross-to-Net, Net-to-Gross and Tax as Benefit.
  • Each user can has a different Employer Setup hence different Tax Ref No and Authorized Name.
  • In the next phase we can implement a Range Basis setup based on Residence Status to help to allocate the Tax Policy using the Employment Engine and different department for Employer Setup.
  • For existing user system will auto create the record with blank Income Tax No, zero dependent, using default Tax Policy and “Tax as Benefit” as Tax processing method.

       Employer Setup

  • By default, System will use the company Tax Ref No for new record.
  • User can adopt different Employer Setup if they require different Authorized Name or Tax Ref No.
  • To provide a default without Employer Tax Ref No.


     Tax Policy

  • This Tax policy is useful especially for different region may have different Tax amount borne by Government as stated in the specification. Users are expected to enter a full Tax borne by Government and the engine will use the assigned Region Index Table to compute the actual Tax borne by Government.
  • The empty database will have a default policy holding the latest taxation rate.
  • Each Policy has a Progression Table to keep track of the changes implemented by the government such as the Tax Borne By Government, the different percentage and capping for Tax Deduction etc.
  • When there is a change in the Taxation rate, user can create another progression record with an effective date and fill in the new percentage and capping. Service pack is also available to update the default policy with a new progression record.
  • Monthly Tax Computation Table is another setup where user can reuse the Table for other policy.
  • In the Assign page User can also mass assign selected employee to a specified Tax Policy.

   

Monthly Tax Computation


  • The Monthly Tax Computation Table can be reused for different policy.
  • In the Computation Table, user has to enter the Up to Amount and system will start from 0 to the lowest amount. The last record has to be 999,999,999,999 in order to represent > than the second highest amount.
  • For each range record, the user has to select a Formula ID. They may like to create all the Formula ID from the left side before setting up the Computation Table.
  • System will not allow any amendment to the Formula Setup when Computation Table has been amended and the vice versa.
  • Whenever the user has chosen a Formula ID in the Computation Table, system will automatically locate the Formula ID on the left side to present the Formula but in read only until the Computation Table record is posted or cancel.



                                                                                                          *  For more details, kindly refer to attachment  *

 

 

 


Attachments
Indonesian Taxation.pdf 0.9 Mb Download File
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