IMPLEMENTATION OF PPH IN CHINESE EMPLOYEE WHO WORK IN INDONESIA, CASE STUDY IN PT KONAWE PUTRA PROPERTINDO

Abstract

This research is about the implementation of PPH in Chinese employees who work in Indonesia, the objective of this research is to demonstrate result of the application PPH for Chinese employees who work in Indonesia and comparative with Chinese employees who work in China at same position. According to PPH, it is compulsory for all resident taxpayer or non-resident taxpayer to realize and pay the individual income tax once taxpayer getting income (in this research the income refer to salary and wage). This research method mainly is a descriptive research with case study. The researcher uses primary data and secondary data to show or explain how to apply PPH to Chinese employees who work in Indonesia and how to pay individual income tax in china after paid in Indonesia. The research also will find the method of tax payment for Chinese citizen who work aboard and get income from overseas in china according to the income tax law of People’s Republic of China. The researcher will compare the tax amount for same position but different workplace.