Taxation of Income Tax on Instagram Celebrities Endorsement Service in Indonesia

Abstract

- This writing is based on legal issues regarding the juridical review of the imposition of income tax from endorsement service activities in the world of social media. The purpose of this paper is to analyze the rules governing the imposition of income tax from endorsement service activities and to analyze the object and subject standards of the endorsement tax. The research method used in normative legal research is conducting research from primary and secondary legal sources related to this writing. Tax is a very important income for a country because it can provide a balance. Activities from endorsement services can be taxed because people who offer endorsement services can generate fairly large profits. Therefore, endorsement activities become a place of livelihood for celebgrams or influencers. Endorsement activities are subject to income tax (PPh) due to using the services of individuals. Income tax rules are contained in Article 4 of Law No. 36 of 2008 concerning income tax and provides an explanation of the object of income tax is income earned or obtained by taxpayers, whether generated in Indonesia or abroad, whose income is used to add wealth and to fulfill income tax obligations. the needs of the taxpayer, in any form. The conclusion is that the activities of endorsement services on social media need to be collected for taxes. In collecting income tax from endorsement activities, socialization and clear legal provisions are needed in order to realize justice.