Tax Management as a Effort for Corporate Tax Efficiency (Case Study at PT SMH Indonesia)

Abstract

In this study using a combination research method (mixed method). After calculating using the method used by the company (net method), gross method and gross up method, it can be concluded as follows that the net and gross methods have the same amount of Income Tax Article 21, but there are differences where with the net method employees receive income without tax, while with the employee gross method, withholding Income Tax Article 21. Meanwhile, with the gross up method, the income tax paid by the company is greater than the net method and the gross method. Costs that have been incurred by calculating the net method cannot be financed by the company and fiscal corrections must be made. , this will certainly make the corporate income tax bigger. Meanwhile, with the gross up method of Article 21 income tax paid by the company which is a tax allowance for employees, it can be financed by the company and this can be an efficiency for the company because the corporate income tax becomes smaller . The researcher suggests PT SMH Indonesia to change the method of withholding Article 21 income tax in the following year, from the net method to the gross up method so that the Article 21 income tax that has been paid by the company can be financed.