Article 22 Income Tax (PPh 22)
PPh 22 (Article 22) is a tax collection on payments for goods supply and import activities, levied by government treasurers, certain business entities, and importers. Governed by Article 22 of the Income Tax Law and PMK No. 92/PMK.03/2019. Rates vary: 2.5% on general imports with an Importer Identification Number (API); 7.5% without API; 0.25% on certain industry raw material purchases; 0.45-1.5% on fuel station purchases, agricultural products, and others. PPh 22 is generally non-final and creditable.
This article is for education, not tax advice.
Example
PT Importir imports machinery worth USD 100,000 (rate Rp 16,000 = Rp 1.6 billion). PPh 22 with API = 2.5% x Rp 1.6 billion = Rp 40 million, collected when goods clear customs.
Source: Article 22 UU PPh No. 36/2008; PMK No. 92/PMK.03/2019
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