On March 31 2017, the government officially closed the tax amnesty program. Through this economic policy, the government succeeded in receiving IDR 130 trillion obtained from asset declarations and repatriation. Following this success, in July 2021 the government again implemented Volume 2 of the Tax Amnesty program.
Reporting from the website of the Directorate General of Taxes, Ministry of Finance of the Republic of Indonesia, the term tax amnesty can be understood as the elimination of taxes that should be owed. This tax amnesty eliminates administrative sanctions, including interest and late fines related to previous tax periods that were not reported without any criminal sanctions. Thus, taxpayers only need to reveal their assets and pay the ransom in accordance with the mechanism regulated in the Law on Tax Amnesty.
Then, who are the parties included in the tax amnesty subjects? Subject Taxpayers (WP) who are Individuals or Business Entities with the obligation to submit SPT (Annual Tax Return) can participate in the tax amnesty. The tax obligations included include Income Tax, Value Added Tax and Sales Tax on Luxury Goods. There are certain conditions that prevent taxpayers from participating in this program, including the following.
After knowing briefly the definition and who can be involved in tax amnesty, next we will discuss the purpose of this policy. In general, the following are the objectives of holding a tax amnesty.
The following are the requirements that must be met to be able to participate in the tax amnesty program:
1. Have a NPWP;
2. Paying ransom;
3. Have reported the Annual Income Tax Return for the Last Tax Year
4. Pay off all arrears;
5. Withdrawing the application:
6. Make a statement letter to transfer and invest the price into the territory of the Republic of Indonesia (especially for repatriation).
If you have met the criteria for being a tax amnesty subject based on the previous explanation, then you can learn how tax amnesty works:
To be able to report your tax obligations, you can go directly to the nearest KPP in your city. This reporting system will require confidential data collection, so it can only be carried out by taxpayers themselves and cannot be represented by anyone else, even a tax consultant. If it is not possible to come in person, now it is easy to report taxes online via the application provided by the Director General of Taxes.
Next, you can submit a statement of assets to the tax officer. Make sure you have calculated asset depreciation correctly to avoid overpayment. Apart from that, you will also be asked to complete a number of other requirements before this application is processed.
Your reporting file will be processed in approximately 10 (ten) working days. After that, you will get a Tax Amnesty Certificate.
Are you or your company participating in this program? Or do you still not really understand what is meant by tax amnesty? For this reason, understand the discussion regarding the tax amnesty policy issued by the Ministry of Finance of the Republic of Indonesia and fulfill your tax obligations.
Understanding the difference between revenue and income is crucial when you are running a business strategy.
Revenue and income are two terms that are often mixed up even though they are two different things.
As reported by Paddle, in business, revenue is the top line (income or total income from products or services).
Meanwhile, income is the bottom line (revenue minus production costs) so the difference between the two is clear.
Both revenue and income have important values for a business.
Understanding the difference between revenue and income will help you understand the development and financial stability of the business.
What are the differences between the two? Read more below.
Quoted from Investopedia, revenue is the total income or income generated from the sale of products or services related to the company's main business.
Revenue in business is also known as gross sales or the amount of gross sales.
As previously explained, revenue is also called the 'top line' in business because it is at the top of the company's financial statements.
The revenue value is the income generated by a company before being reduced by any costs.
So, when a company or business experiences top line growth, it means that the company is experiencing increased sales.
A business can generate revenue from various sources, including but not limited to the following:
Income or net profit is the total income or profit of a company.
Usually when an investor or financial analyst talks about a company's profit, what is meant is the company's income.
Revenue and income are often equated because both are positive cash flows from a company.
In fact, income is the bottom line in a financial context, where the income value is at the end of the financial report after deducting all needs or expenses.
Quoting Business, a company's income can be negative if expenses exceed its final income during the period.
If income is negative, then the company is experiencing a loss. Income has two categories, namely gross income and net income.
The main difference between revenue and income can be seen from how the two are defined.
Revenue is the total income or income from a company that comes from various sources.
Meanwhile, income or earnings is the final income value that arises from income minus expenses for running the business.
Well, these costs include taxes, rent, commissions, and production costs. A decrease in revenue is also known as a revenue deficit or income deficit.
Other differences that need to be understood between revenue and income are as follows:
If revenue is the top line, income is the bottom line. The purpose of this statement is the different revenue and income sections on the financial statement or income statement.
Revenue is considered the top line of total business income and income on the bottom line.
That is why even though they are closely related and intersect, revenue and income cannot replace each other's functions.
Although revenue is calculated by multiplying the total number of products and services sold by their price, income is calculated by subtracting expenses, costs, and taxes from all total income.
Understanding the relationship and differences between revenue and income in business allows you to measure progress, analyze potential, and prepare the right business strategy.
According to Paddle, here is the importance of understanding the difference between revenue and income for your business:
Understanding how to monitor revenue and income separately is the key to creating accurate and clear financial statements.
Be sure to calculate all aspects that will be included in revenue including investments that come into the company.
For income, it is necessary to pay attention to different expenses in each business area.
A good understanding of the difference between revenue and income also allows financial reporting to be more representative and effective.
Representative financial reporting is important for analyzing the profit and loss factors of the business being run.
This will also help you see better the potential and problems that need to be addressed immediately.
To understand financial reporting analysis well and produce representative reports, you can also learn by taking a Financial Analysis class.
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Understanding revenue and income is also important for managing tax documents. The last income value or figure is the figure before tax.
You must understand the tax requirements and important steps to prepare the company's financial documents.
To get investors, companies do not only need revenue, because that is not enough to convince investors.
Understanding the dynamics and differences between revenue and income will help create and demonstrate a broader understanding of business operational efficiency to investors.
Don't let yourself not understand this before running a business, okay!
Understand the differences and develop an effective strategy for your business!
Doing business can be started by using investment credit services. In general, investment credit is a service that helps finance businesses both small and large scale.
This type of credit is an alternative type of bank credit, but is still officially supervised by banks in Indonesia.
Basically, investment credit is a government program that aims to develop the economy both in the region and in Indonesia. Providing investment credit to entrepreneurs can have an impact on creating job opportunities so that it can help reduce unemployment.
In general, investment credit seems quite profitable for the country and its business people, right?
Interested in applying for investment credit for business expansion? Understand more about investment credit first through this article!
Investment credit is debt given to customers to expand their business. The debt repayment system can also be chosen based on a term agreement between customers who have businesses and the lender.
In Indonesia, the tenors given by banks are quite varied but generally 10-15 years. However, if you cannot pay it off within that time period, there is a 4 year deadline.
This type of credit is used to buy necessities or finance needs when building a business. Apart from that, investment credit can be applied for for various types of businesses, small and large scale.
In general, the function of investment credit is to provide business capital for both individual businesses and institutions. The purpose of investment credit is provided so that business owners can develop their business in accordance with predetermined achievements.
In the financial sphere, investment credit is useful for moving the wheels of the country's economy and improving it. With the capital assistance provided to business owners, many businesses can develop.
It doesn't stop there, business development in the regions can have an impact on creating more job opportunities, thereby helping the government reduce unemployment.
After understanding what investment credit is, of course there is a difference between this type of credit and others. The following are characteristics of healthy and official investment credit for you to consider:
For your information, investment credit is a government program so activities are supervised by the central bank. The central bank in Indonesia is Bank Indonesia with the function of supervising investment credit activities.
It doesn't stop there, the central bank's task is also to provide capital and assist business development in line with the function of credit.
As we know, investment credit is a government program supervised by the central bank. The large benefits provided make investment credit a target for parties participating in various government business programs.
Investment credit is productive. This is because the credit provided can be used to purchase inventory for business continuity and also business production costs. An example of increasing productivity is by adding tools or improvements.
With this, of course the business capital provided can encourage movement in the business's finances.
Investment credit is indeed interesting for those of you who have a business, either an individual or an institution. Apart from having expansion benefits, you also help the regional or government economy as long as you make payments on time.
However, what can investment credit references be used for? The following is an example of investment credit that you can consider when you want to apply!
For businesses that offer products, once they have their own factory, investment credit can be used. One of the things that can be done with investment credit facilities is purchasing business inventory.
If it is a factory, an example is the purchase of production machines. The purchase of business inventory equipment could be a component covered by the investment credit provider bank.
Already have a business building, but need to renovate it to make it more viable? Investment credit can also provide costs for renovating buildings used for your business.
Examples of business buildings that can be renovated are head offices, factories or warehouses which are owned by individual businesses or institutions.
Have an adequate business building, but during expansion do you need a new building for production? Investment credit can help you to buy a new building for your production site.
Building a factory requires a lot of money, so investment credit can be an official financial service that can help in expanding your business.
This investment credit service provided by the government is indeed profitable for business people, both small and large scale. However, because applying for credit also has various requirements, make sure before applying you know all the requirements.
Apart from the financial matters that investment credit can help with in business expansion, you also need to equip yourself with knowledge before expanding. Want to deepen your business knowledge in the fields of supply chain, resources and marketing but don't have much time?
You can choose prasmul-eli which has several short program options.
For you business people who want to return to studying various sciences, Prasmul-eli now provides a variety of short program options with a learning duration of only 1-3 days. The program also presents facilitators who are experts in their fields so you can gain new business insights and tricks.
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With IDR 200 thousand in the past you could shop for more goods than now. This situation is an example of the time value of money.
This situation occurs because the value of the money you have now may change or even decrease in the future. One way to overcome these changes is with long-term investment.
Therefore, in this article you must learn in full about the time value of money from various concepts to calculation formulas.
Time value of money is a financial concept where the current value of money may decrease in the future. This reduction in value is caused by time, fluctuations in bank interest, and inflation.
Investopedia illustrates this concept with the following case example. If you are offered IDR 5 million now or in two years, it would be better to accept the money now.
Even though the amount of Rp. 5 million will not change in the next two years, the value and goods it can buy will decrease. This is caused by the factors mentioned above.
Therefore, by receiving IDR 5 million now, you can increase its value by investing. That way, you will receive additional money from the investment.
Maybe you think that time value of money is a bad thing, but that's not always the case. Here are some ways to take advantage of this:
Summarized from MasterClass, based on changes in time and ways of looking at the value of money, there are three concepts of time value of money, namely:
Present value is the amount of money you need to invest now to get a certain profit in the future. Briefly the current value of money. This amount also serves as a benchmark for the amount of interest you will receive after investing.
Future value is a prediction of the amount of profit you will get based on a certain interest rate and duration. Briefly the future value of money. For example, based on present value, you invest IDR 100 million. By calculating high interest rates, you will get greater profits/future value.
An annuity is additional income that you receive consistently over a certain period of time. For example, if you own a boarding house business, every month you will receive an annuity in the form of rent.
To calculate the time value of money, you can calculate it based on each concept. Beforehand, you must understand the following terms:
After understanding the terms, here are the formulas and examples of calculations, citing BankRate:
The present value formula is PV = FV / (1 + r)ⁿ.
Example of PV calculation: You have a savings target of IDR 25,000,000 within 3 years. You decide to create a deposit account with an interest rate of 10% annually. Based on the formula above, the calculation is:
PV = 25,000,000 / (1 + 10%)3
PV = 25,000,000 / 1.331
PV or money you have to prepare now = IDR 18,782,870
The formula is FV = PV x (1 + r)ⁿ.
Example of calculating future value: if you save a deposit in a bank of IDR 15,000,000 with an interest rate of 10% annually. You have a plan to keep it for 3 years.
First year FV: 15,000,000 x (1+0.10) = 15,000,000 x 1.10 = IDR 16,500,000
Second year FV: 16,500,000 x 1.10 = Rp. 18,150,000
Third year FV: 18,150,000 x 1.10 = IDR 19,965,000
With the calculations above, it can be concluded that the total profit you will get in three years is IDR 4,965,000.
We recommend that you use time value of money calculations in the following situations:
By understanding the time value of money, you can estimate the benefits of the money you have now if invested correctly.
Want to learn more about the time value of money and how to use it for future profits?
Join our short program and learn from the experts by clicking here now!