Donations to political parties

This is in reference to Berita Pajak on July 1, 1999, concerning the imposition of a tax on aid or donations to political parties.

As a tax observer, I read the Income Tax Law, Article 4 paragraph 3, in which it is stipulated that assistance or a donation is excluded from income tax items. It means that an organization which receives assistance or a donation should not pay income tax for the amount of the aid or donation. On the other hand, an organization which contributes to other parties cannot charge it as an expense.

IGNATIUS RYAN TUMIWA

Jakarta