Analysis of the Mechanism for Calculating and Reporting Income Tax Article 21 Using the Average Effective Tax Rate at PT Star Blue

Sinaga, Rudi Sondang and Bago, Abdiel Putra (2025) Analysis of the Mechanism for Calculating and Reporting Income Tax Article 21 Using the Average Effective Tax Rate at PT Star Blue. Asian Journal of Basic Science & Research, 7 (2). pp. 109-118. ISSN 2582-5267

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Abstract

The Average Effective Tax Rate (AETR) scheme is a tax policy designed to simplify the calculation of income tax on irregular income, specifically for permanent employees who receive additional income only in certain months. The implementation of the AETR method in the company aims to maintain consistency and accuracy in tax reporting, as well as simplify monthly calculations. This study aims to evaluate the effectiveness of the implementation of the AETR method at PT Star Blue and identify the challenges faced in practice. A qualitative approach is used, with data collection techniques including direct observation, in-depth views, and document studies. The results show that the use of the AETR method in calculating Article 21 income tax provides significant differences compared to the conventional method with progressive rates. The AETR method allows for more stable monthly tax deductions based on the employee's gross income, considering the applicable Non-Taxable Income and the classification of rates according to each individual's tax status. Although it offers administrative efficiency, several challenges were found in its implementation, such as uneven technical understanding and limitations in the integration system. This study recommends increasing human resource capacity and strengthening the reporting system to optimize the implementation of the AETR. Keywords: Mechanism; Calculating Income Tax; Reporting Income Tax; Article 21; Effective Tax Rate; Average Effective Tax Rate; PT Star Blue; Income Tax Calculation; Tax Reporting; Corporate Taxation.

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