Characteristics and Tax Classification

Tax is one of the important things in a country. As a good citizen, it is only proper that we pay taxes properly in accordance with the provisions of the laws of the Republic of Indonesia.

Although it is undeniable that tax misappropriation is still found to be carried out by the state apparatus, but this does not mean that we must ignore the tax issue. Still, we have obligations regarding this tax. For that, we also need to learn about this taxation problem.

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Understanding Tax

Understanding tax is important to understand. According to some experts, there are several types of tax definitions. Understanding tax, for example, can be understood in the opinion of Prof. Dr. Rochmat Sumitro, SH., Stated in his book entitled “Fundamentals of Tax Law and Income Tax”.

Prof. Dr. Rochmat Sumitro, SH, stated that taxes are people’s contributions to the State treasury which are based on the law (which can be forced) by not receiving arising services (contra-performance) that can be directly shown and are used to pay public expenses.

From this understanding, taxes can be defined as dues to the state of the people who are required to pay them, because the law can be enforced while the government does not provide direct rewards that can be demonstrated.

Characteristics of taxation

From the description of the meaning of the tax, it can also be concluded that in the tax there are certain characteristics. Characteristics of the tax include the following:

  1. Taxes are contributions from the people to the State
  2. Taxes are levied according to the law
  3. The tax is used to finance general government expenditure
  4. There is no direct contra by the government in paying taxes.

Taxation Basis

In paja collection, there are three known tax collection principles. The principle of tax collection, namely:

1. Principle of domicile (origin of residence)

According to the principle of domicile, the country where the taxpayer lives or is domiciled has the right to tax the taxpayer of all income earned, for example income tax.

2. Source of resources

According to the principle of the source, the imposition of this tax depends on the source in a country. So, the country where the source of income is entitled to impose taxes and not remember the place of taxpayers residing or domiciled, this is for example PPh.

3. National basis

The national principle connects the taxation with the nationality of a country. For example, foreign national tax in Indonesia.

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Tax Classification

Taxes can also be classified into several types. The existing tax classifications are as follows:

A. Central tax and local tax

Central tax is tax that is managed or collected by the central government, and is carried out to replenish the State treasury. Examples of central taxes: PPh, VAT, PPnBM and stamp duty.

Local tax is a tax that is managed or collected by the local government and is used to fill local treasury. Examples of local taxes: development tax and motor vehicle tax.

B. Direct tax and indirect tax

Based on the aspect of state administration, there are direct taxes and indirect taxes. Direct tax is a tax that is applied firstly registered or registered by giving a kohir number, or a taxpayer number whose use is done periodically.

Meanwhile, if based on its economic aspects, direct tax is a tax whose burden cannot be shifted or delegated to others. Examples of direct taxes: income tax and land and building tax.

If it is based in terms of the administration of the State, then indirect taxes are taxes whose collections were not registered in advance based on the final number and their use is not done periodically.

Meanwhile, if it is based on economic terms, then indirect taxes are taxes whose tax burden can be shifted or delegated to others. Examples of indirect taxes: value added tax (VAT), customs, and stamp duty.

C. Subjective tax and objective tax

Understanding subjective tax is a tax that is closely related to subjective conditions (the nature of personality). Example of a subjective tax: PPh. This subjective tax is greatly influenced by the circumstances of the taxpayer himself. Circumstances that can affect these, include:

  • His work
  • The number of family dependents
  • Married or unmarried
  • Personal debt
  • Production of households.

While objective tax is a tax that is closely related to the tax object, so the size of the tax object depends only on the state of the object and without being influenced by the subject matter. Examples of objective taxes: motor vehicle tax, development tax, land and building tax, and customs.

Tax collection system

Basically the tax collection system consists of three things. The tax collection system, namely:

  1. Self Assessment System, is a tax collection system by putting the authority to determine the amount of tax to be paid by the taxpayer, located on the taxpayer concerned.
  2. Official Assessment System, is a tax collection system whose authority is to determine the amount of tax owed by taxpayers, this is located in the tax authorities or tax collection apparatus.
  3. With Holding System, is a tax collection system with the authority to determine the amount of tax owed, not located on the tax authorities or taxpayers themselves, but rather lies with a third party appointed by the Minister of Finance.

Tax Collection Requirements

To be able to collect taxes, you also need the requirements that must be met. Tax collection requirements include:

  1. Tax collection must be fair
  2. Tax collection must be based on the law
  3. Tax collection does not disturb the economy
  4. Tax collection must be efficient
  5. The tax collection system must be simpl
by Abdullah Sam
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