Article 26 of the Income Tax withheld income tax on income derived from Indonesia received / earned taxpayer abroad as permanent (Permanent Establishment) in Indonesia, in this case internastional law applies if the two countries have an agreement known as the tax treaty, which aims to improve the economics of the two sides in international taxation and avoid double taxation that may incriminate any of the parties. This study was conducted to determine the mechanism of counting, depositing and reporting on income tax article 26 Royalty software made by PT DNA toward PT ABC LTD against double taxation treaty between Indonesia and Singapore. This study discusses the mecanisms and rates calculation anda withholding income tax article 26 with the object of royalty tax software by PT DNA toward PT ABC LTD with deposit and reporting along the implementation of teh tax payable. Results form this study that the determination of the rate of the royalty has been in accordance with P3B between Indoensia and Singapore, as well as in the implementation of counting, depositing and reporting is done in accordance with applicable regulations.
Keywords: Income Tax Article 26, P3B, Royalties Software