Definition of Positive and Negative Fiscal Corrections

Positive Fiscal Correction

Positive Fiscal Correction is a correction or adjustment that will result in an increase in taxable profits which will ultimately make the Corporate Income Tax also increase.

Positive fiscal correction includes:

    Costs that are not directly related to the company's business activities to obtain, collect, and maintain income
    Costs that are not permitted as deductions from PFM
    Less recognized costs, such as depreciation, amortization, and deferred fees according to TAX MANDATOR are higher
    Costs derived from income that is not a tax object
    Costs derived from income that has been subject to Final Income Tax

Negative Fiscal Correction

is a correction or adjustment that will result in a decrease in taxable profit that makes the corporate income tax payable will also decrease. Negative fiscal corrections include:

    Higher costs are recognized, such as lower depreciation according to WP, amortization difference, and deferred costs of recognition
    Income derived from income that is not a tax object
    Income earned from income that has been subject to Final Income Tax

Fiscal Correction Difference

There is a difference in the treatment of the determination of income and costs according to Taxation with the Financial Accounting Standards as a result of the difference between temporary and temporary differences; accounting treatment for these differences needs to be reconciled between commercial financial statements

with fiscal financial statements; and the effect of these differences on the financial statements is on the amount of tax payable and the amount of operating income.

Fixed Difference

For companies:

All income is income that will add taxable income, and all expenses are expenses that will reduce taxable income. But in taxation

Not all income is an increase in taxable income, because there are several types of income that are not taxing profit enhancing factors because the income has been taxed final, and not all expenses are deducted by taxable income because there are several types of expenditure that are not is part of the company's activities (donations, entertaint or bribes without a normative list). In Taxation Accounting, this difference is called the Permanent Difference.

Fixed Differences According to the Standards of Financial Accounting and Fiscal
   Bank Interest Income, Non-business income that has been deducted by final income  Dividend income, non-business income Enter the exclusion of tax objects
    Donation Fee or Prize in the Culture (listed in the income statement) Does not reduce income
    Profits from investing in shares on the Indonesia Stock Exchange, Non-business income No income added
    Income from donations or grants Extraordinary income Does not increase income
    Employee benefits in kind, income (for employees) and costs (for employers) Does not reduce income
    Entertainment fees or bribes can be included as a cost as a deductible expense if there is a nominative list, and vice versa.
    Fees for fines and interest taxes Income deduction Non deductible expense