This study aims to determine how minimize tax liabilities amount to be paid and payable in accordance with tax laws in force and would like to see extent of the effect of tax planning on income tax paid by 21 PT.MSH Energy thus obtain optimal return and minimize corporate tax payable.
This study uses three methods of observation, interviews and calculate the tax planning using tax laws in effect and compare it with applicable corporate tax planning. The data collected is form 1721-A of income tax (PPh) of article 21 of 2012 and permanent payroll PT. MSH Energy in 2012.
The result would be summarized as below:
1. PT. MSH Energy has done Gross Up method for their tax planning on income tax (PPh) 21, and succeed to minimize amount of corporate tax payable.
2. Benefit of using Gross Up method are companies able to minimize their income that gives effect lower corporate tax payable, however amount of decreasing corporate tax payable is not great as increasing wages as effect of Gross Up method.
3. The research that has been done, it can be concluded that PT MSH Energy has done Tax Planning but it was not good enough, because in terms of taxation, tax planning is being successful if the income tax payable become smaller and at the same time also increasing commercial income.
Keywords: Gross Up, Corporate Tax, Income Tax, Tax Planning, Net