Types of Central Taxes

This time we will discuss the types of central taxes and their functions. In increasing economic growth and accelerating the development of the country, it cannot be separated from the important role of taxes in encouraging this realization.

 

Taxes are an important factor as the largest contributor to the State Revenue and Expenditure Budget,

 

This can be seen from the achievement of tax revenue in 2015 which generated more than 1000 Trillion Rupiah in revenue and the percentage of tax revenue reached more than 80% of the total APBN.

 

Because it has a very important function, it requires special attention from the government so that its implementation is in accordance with tax regulations.

 

One example of the government’s attention to taxes is that there was a phenomenal breakthrough in implementing taxes in 2016, namely the enactment of a tax amnesty which can be said to be quite successful.

 

Based on the laws and regulations in force in Indonesia, the types of taxes included in the scope of the central tax are Income Tax (PPh),

 

Land and Building Tax (PBB), Stamp Duty and Value Added Tax (PPN). Here’s the explanation …

 

Table of contents :

Income Tax (PPh)

Land and Building Tax (PBB)

Stamp Duty

Value Added Tax (PPN) and Sales Tax for Luxury Goods (PPnBM)

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Income Tax (PPh)

Is a type of tax imposed on each individual or entity and certain entities related to the existence of income received by that party,

 

where the calculation is determined based on the tax year. This is a type of tax that is generally attached to professional workers and owners of a business or company.

 

From the type of tax, it can be seen if this tax emphasizes an object, namely income, speaking income, of course, has many interpretations in seeing its scope, because income can be obtained from various sources.

 

The income referred to in this tax is any additional economic capability obtained by each taxpayer, whether income obtained from within the country or abroad,

 

where the existence of the income can be used as consumption and increase the personal wealth of each taxpayer.

 

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The form of income can be in the form of salary, wages, commission, annual bonus or other, gratuities, pension, and the receipt of compensation in the form of taxable income.

 

central tax types

 

Land and Building Tax (PBB)

Is a type of tax imposed on individuals or entities as owners or users of land and building rights.

 

There are several elements in land and building tax, namely land, buildings, tax object sale value (NJOP), tax object notification, tax payable notification.

 

The so-called earth covering the surface and what is in it, the building is a form of technical construction which is built and placed permanently on land or waters,

 

the selling value of the object is the average price obtained from buying and selling transactions that occur in general, and if there is no sale and purchase of the object,

 

Then the determination of tax objects is based on the process of comparing prices with other objects that have similar characteristics,

 

Tax object notification letter is a letter containing data on tax object reporting, and tax payable is a letter containing the amount of tax to be paid from the directorate general of taxes to taxpayers.

 

The implementation of land and building tax has legal guarantees and certainty as regulated in Law, and specifically for this tax it has been regulated in Law Number 12 of 1985.

 

This law contains various explanations regarding the entire scope of attention in the implementation of special taxation procedures for land and buildings, which contains general provisions related to tax elements.

 

An explanation of the form of tax subjects that have been regulated in accordance with the provisions and approval of the Director General of Taxes and the enforcement process,

 

calculation of the amount of the tax rate imposed on the tax object including the basis for imposition and calculation procedures,

 

determination of the basis of the tax year, procedures for sending notification letters, procedures for payment and collection, and witnesses in the event of a criminal offense.

 

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Stamp Duty

Types of taxes imposed on the use of documents. What the document here says is a special document,

 

where there are several rules relating to the determination of documents included in the type of taxation,

 

namely documents in the form of paper or letters and containing writing containing the meaning and intent of actions, circumstances, or reality for certain individuals or individuals and parties with special interests.

 

The documents referred to in this case are tax objects which include, among others, letters of agreement, notary deeds, land deeds, letters containing a certain amount of money,

 

securities (such as notes, promissory notes, acceptances and checks), and the last is documents

 

in the form of securities with name and in whatever form shall contain a nominal amount above the legal value.

 

The implementation and legal basis for stamp duty is regulated in Law Number 13 of 1985.

 

Initially before this law was enacted, the regulations regarding material obligations still used regulations in 1921, where these regulations were regulations made during the Dutch colonial era.

 

Due to the ongoing changes in conditions and the domestic economic climate, these regulations are deemed insufficient to adapt to the changes that have occurred.

 

so that regulatory changes and simpler ease of implementation are needed, Law no. 13 of 1985 set.

 

In this law, it regulates all tax implementations starting from the explanation of general provisions that must be met and adhered to, classifying tax objects based on tax criteria,

 

calculating and stipulating the stamp duty rate and the imposition of the nominal price applied, the types of documents that are not included in the calculation of the type of stamp, an explanation of the stamp duty to be paid.

 

In addition, this Law contains provisions on the shape and size of postage stamps, procedures for the use of stamp duty, and procedures for payment of stamp duty.

 

Value Added Tax (PPN) and Sales Tax for Luxury Goods (PPnBM)

These two types of taxes have the same basic rules in the enforcement framework, namely in Law Number 8 Year 1983, but mechanically these two types of taxes have many differences.

 

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Value added tax is a tax imposed on consumption of goods and services, in which goods and services

 

what is meant by law is included in the category of taxable object within the customs area (Indonesian territory).

 

This tax collection applies to anyone who is involved in the activities of consuming goods and services, whether individuals or individuals, business entities or companies, including the government.

 

The characteristics of the value added tax stated in the law are as follows.

 

Indirect tax, meaning that the tax burden holder and the responsible party who is obliged to report are subject to different taxes.

Multistage, meaning that each distribution and production activity will be subject to different taxes.

Objective taxes must be adjusted to the provisions contained in the law relating to tax objects.

The tax calculation is based on the amount of incoming and outgoing taxes.

Sales tax on luxury goods is basically included in the provision of value added tax,

 

However, because the consumption activities of certain types of tax objects are classified as luxury goods, sales tax for luxury goods will be subject to it.

 

The provisions regarding taxable goods included in the luxury category are goods which are types of goods included in basic necessities,

 

these goods are only consumed by certain groups of people who are generally high incomes, and the goods consumed have a harmful effect on health, morals and public order in society.

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