Effectiveness of the Implementation of Income Tax Reporting Article 4(2) in Port Services (Land Rental Sector)

Abstract

This study aims to evaluate the effectiveness of Income Tax (PPh) Article 4 paragraph (2) reporting on port services, especially in the land rental sector in PT. PELINDO Sub Regional Head Java. This tax is a type of final tax on certain income, including income from land and/or building rentals. This study uses a qualitative approach with phenomenological methods to understand in depth the experiences and reporting practices carried out by companies. The data collection technique was carried out through in-depth interviews with ten informants from the finance division and direct observation in the field. The results of the study show that the application and reporting of Income Tax 4(2) has been carried out according to the applicable procedures, with two options of withholding mechanism: by the company or by service users. Reporting is carried out electronically through e-SPT and e-Filing, with stages including transaction recap, data validation, preparation of tax returns, and tax remittances. Although the implementation went relatively smoothly, there were administrative obstacles such as delays in deposits or data mismatches due to the choice of payment method by service users. To overcome this, the company has made a number of improvements such as the integration of information systems between divisions, routine employee training, and the preparation of more detailed tax reporting SOPs. These findings underscore the importance of cross-sectional coordination and the use of digital technology to improve tax reporting compliance and effectiveness. This research provides practical contributions for business actors in improving tax compliance and recommendations for improving reporting systems in similar sectors.