1). PT XTZ signs a second agreement with Paris Saint Germany Company (PSG Co.), a company residing...
Question:
1). PT XTZ signs a second agreement with Paris Saint Germany Company (PSG Co.), a company residing in France. PSG assigns its staffs as PT XTZ’s employees for 5 months. The employees obtain salaries directly from PT XTZ. In addition to that PSG Co provides advices from France. In relation with the above agreement, PT XTZ pays IDR 500 million to PSG Company. Questions: 1. What is the payment made by PT XTZ to PSG Company called?
a). Management fee.
b). Technical fee.
c). Consultant fee.
d). Employment fee.
2. What is PT XTZ’s tax obligation in relation to the payment to PSG Company?
a). The said payment is subject to withholding tax at the rate of 20% from gross amount.
b). Withholding tax article 26 at 10%.
c). Withholding tax article 26 at 0%.
d). Exempted from income tax according to tax treaty between Indonesia-France.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta