Gross Up For PPH 21 Cuts: Is it the Suitable Solution?

Abstract

Implementing good university governance in totality and consistency in the academic field is essential. Finance, human resources, and accountability are important elements of higher education governance. This study aims to determine the the calculation of PTKP and the reporting of Article 21 Income Tax, as well as steps that must be taken when there is an error in reporting Article 21 Income Tax by MSE employees under the XYZ Foundation. This study uses primary data. Data has been collected and then analyzed to find out various calculations, namely the net method, gross method, and gross-up method. Results show that the calculation of the Gross-Up Income Tax Method article 21 for employees according to PSAK 46 to minimize Corporate Income Tax is very appropriate as a solution for taxpayers and the XYZ Foundation. Keywords: PPh 21; Gross Up; Personal Taxpayer; KUP