WITHHOLDING TAX ON GIVEAWAY

ABSTRACT : Giveaway has recently become a very popular term among the public because of the presence of social media which has increasingly shown its existence. Various groups are competing to give giveaways as free gifts to their followers on social media with varying values ranging from cheap items to fantastic value for the stated purposes and purposes. This study aims to understand the aspects of taxation, especially withholding income tax on giveaway given by influencers on social media. The research method used is descriptive qualitative. The results showed that the giveaway was divided into two types, namely contest and sweepstakes. The two types of giveaway make the Income Tax deduction mechanism for the giveaway different. Contest type giveaway is subject to non-final income tax, while sweepstakes giveaway is subject to final income tax.
Giveaway can be subject to Article 21, Article 23, Article 26, or Article 4 paragraph (2) Income Tax depending on how it is implemented, but generally giveaway is subject to Article 21 or Article 4 paragraph (2) Income Tax because in general giveaway participants are private individuals.
KEYWORDS: giveaway; contest; sweepstakes; income tax