The Function of Tax
Tax function
Mardiasmo (2011: 1) revealed that the tax has the following functions:
a. Function Budget
To carry out routine tasks of the State and carry out the development, the state requires a fee. This fee can be obtained from the acceptance of the tax. Taxes are used to finance routine as personnel expenditure, spending on goods, maintenance and so forth.
b. Function Set
The government can regulate economic growth through tax policy to regulate the function of the tax could be used as a tool to achieve the government's goal for the country's progress.
c. Stability Function
With the tax, the government has the funds to implement policies related to price stability so that inflation can be controlled. This can be done for example by regulating the circulation of money in the community, tax, use tax effective and efficient.
d. Income Redistribution Function
Principles of Tax Collection
The principles of taxation as disclosed by Smith in Supramono and Damayanti (2009: 3), states that taxation should be based on the following principles:
1. Equality
There must be justice, and equality of rights and obligations between the taxpayer in a State. Fairness in tax collection is divided into two, among others:
a. Horizontal fairness means the same tax burden to all Taxpayers who earn the same as the number of dependents the same anyway, regardless of their income or source of income.
b. Vertical justice, meaning fair taxation. If the taxpayer in the same economic conditions it will be subject to the same tax.
2. Certainty,
Taxation should be clear, is not done arbitrarily. Taxpayers must know clearly and certainly the amount of tax due, when it must be paid, and the payment deadline.
3. Convenience
Taxation must pay attention to comfort (convenience) of the taxpayer, in the sense that the tax must be paid by the taxpayer at the moment that does not complicate the taxpayer, which is when they earn income (pay as you earn).
4. Economics
Fees for tax purposes should be kept to a minimum. With the cost of harvesting minimal, is expected to generate tax revenue as much as possible.
Tax Collection System
Tax collection system according to the authority collected and determine the amount of taxation (Mardiasmo, 2011: 7):
a. Official Assessment System
Is a system of taxation that gave the government (tax authorities) to determine the amount of tax payable by the taxpayer. Characteristics:
• Authority to menentuan the amount of tax payable on the tax authorities.
• The taxpayer is passive.
• Tax debt incurred after the tax assessments issued by the tax authorities.
b. Self Assessment System
Is a tax collection system that gives authority to the taxpayer to decide for themselves the amount of tax payable. Characteristics-characteristics:
• The authority to determine the amount of tax payable on the taxpayers themselves.
• Taxpayers passive, ranging from counting, deposit and report its own taxes owed.
• The tax authorities do not intervene and simply watched.
c. With Holding System
Is a system of taxation authorizing a third party (not the tax authorities and not the taxpayer is concerned) to determine the amount of tax payable by the payer.
F. Income Tax
Income Tax Act (VAT) the imposition of income tax on the subject of taxes with respect to income received or earned in the tax year. The tax subject is taxed when you receive or earn income. Subject taxes deriving income in the Income Tax Act is called the Taxpayer. Taxpayers are taxed on income earned or acquired during a tax year or they can be taxed for income tax in the part of the year when the tax liability subjectivity commencing or ending in the tax year.
Personal Income can be categorized as follows:
1. Personal People who earn income from the business or activity
2. Individuals who earn income from (1) the employer
3. Individuals who earn income from work free
4. particular employer: a particular taxpayer conducting business activities in the field of trade or wholesale and retail through a place of business / outlets (outlet) spread across multiple locations that do not receive or obtain any other income that is not taxed are final, and the individual who obtained other income such as interest, dividends, royalties, rents, awards and prizes, profits from the sale / transfer of property (Juanda, 2003).
In Regulation Director General of Taxation No. PER-32 / PJ / 2010 Article 1 is mentioned, the Directorate General of Tax Regulations have the following meanings:
1. Individual Tax Payer Specific Employers are individual taxpayer conducting business as a retailer who has one (1) or more places of business.
2. installment of income tax article 25 is installment income tax in the current tax year for each month that must be paid by the taxpayer as referred to in Article 25 of Law No. 7 of 1983 on Income Tax has been amended by Act No. 36 of 2008.
Taxable
Based on the Income Tax Act 36 of 2008 article 2, paragraph 1 of the fourth amendment on the Income Tax Law No. 7 of 1983, which became the subject of taxes is, Personal, UNESCO, the Agency and Permanent Establishment.
As defined in the Income Tax Act, subject to tax in the Income Tax Act consists of two types, namely:
1. Subject Taxes In country.
a. An individual who resides in Indonesia or individual who has been in Indonesia for more than 183 days within a period of 12 months, or an individual who in a tax year is and intends to reside in Indonesia.
b. Body established housed in Indonesia.
c. Undivided inheritance as a unit replacing entitled.
2. Subject Taxes Foreign Affairs.
An individual who does not reside in Indonesia, located in Indonesia but no more than 183 days in any period of 12 months, and the agency is not established and housed in Indonesia, conducting business or engaged in activities through a permanent establishment in Indonesia.
Tax Object
Tax object can simply be defined as something that is taxed where it is to be met by the subject of taxation. Taxable income can be divided into several categories, namely :.
1. Object Income Tax.
a. Income received on a regular basis, can include salaries, wages, monthly pension, etc.
b. Income derived in an irregular manner, such as commissions, bonuses, production services, etc.
c. Imports of goods and / delivery of goods
d. Imports of goods are exempt from import duties
e. Dividends, royalties, or interest, eg, premiums, discounts, etc.
2. Objects of Value Added
Objects in this category is the delivery or activities undertaken by PKP (employers Taxable). The delivery of goods and services can be taxed if:
• What is delivered is the BKP (taxable goods) or JKP (Taxable Services)
• Delivery of goods and / services carried out in the Customs Area
• Actions undertaken submission PFM taxable delivery.
• Delivery of goods and or services performed in the company or work everyday.
3. Objects and Building Tax
Definition of Object UN is immovable, in the form of the earth (could include the earth's surface, land and inland waters and territorial sea of Indonesia and all contained therein) and building (in terms of taxation building is defined as a construction technique that is planted and look in permanently on land and / marine).
4. Objects Customs Acquisition of Land and Buildings
Objects BPHTB (Bea Acquisition of Land and Building) is the acquisition of land and buildings that can be ground (even including the crop top, land and buildings, and buildings. These objects can only be imposed BPHTB.
5. Object Stamp Duty
Which could be subject to stamp duty is the document. Document itself in terms of taxation can be interpreted as a paper containing writings that carries meaning and purpose of the deeds, circumstances, or the reality for a person and the parties that have an interest.
Based on Law 17 of 2000 Article 4, which included places are income tax, which is additional economic capability received or accrued by the taxpayer, whether originating from Indonesia and outside Indonesia, which can be used for consumption or to increase the wealth of Mandatory tax is concerned, the name and in any form.
Mardiasmo (2011: 1) revealed that the tax has the following functions:
a. Function Budget
To carry out routine tasks of the State and carry out the development, the state requires a fee. This fee can be obtained from the acceptance of the tax. Taxes are used to finance routine as personnel expenditure, spending on goods, maintenance and so forth.
b. Function Set
The government can regulate economic growth through tax policy to regulate the function of the tax could be used as a tool to achieve the government's goal for the country's progress.
c. Stability Function
With the tax, the government has the funds to implement policies related to price stability so that inflation can be controlled. This can be done for example by regulating the circulation of money in the community, tax, use tax effective and efficient.
d. Income Redistribution Function
Principles of Tax Collection
The principles of taxation as disclosed by Smith in Supramono and Damayanti (2009: 3), states that taxation should be based on the following principles:
1. Equality
There must be justice, and equality of rights and obligations between the taxpayer in a State. Fairness in tax collection is divided into two, among others:
a. Horizontal fairness means the same tax burden to all Taxpayers who earn the same as the number of dependents the same anyway, regardless of their income or source of income.
b. Vertical justice, meaning fair taxation. If the taxpayer in the same economic conditions it will be subject to the same tax.
2. Certainty,
Taxation should be clear, is not done arbitrarily. Taxpayers must know clearly and certainly the amount of tax due, when it must be paid, and the payment deadline.
3. Convenience
Taxation must pay attention to comfort (convenience) of the taxpayer, in the sense that the tax must be paid by the taxpayer at the moment that does not complicate the taxpayer, which is when they earn income (pay as you earn).
4. Economics
Fees for tax purposes should be kept to a minimum. With the cost of harvesting minimal, is expected to generate tax revenue as much as possible.
Tax Collection System
Tax collection system according to the authority collected and determine the amount of taxation (Mardiasmo, 2011: 7):
a. Official Assessment System
Is a system of taxation that gave the government (tax authorities) to determine the amount of tax payable by the taxpayer. Characteristics:
• Authority to menentuan the amount of tax payable on the tax authorities.
• The taxpayer is passive.
• Tax debt incurred after the tax assessments issued by the tax authorities.
b. Self Assessment System
Is a tax collection system that gives authority to the taxpayer to decide for themselves the amount of tax payable. Characteristics-characteristics:
• The authority to determine the amount of tax payable on the taxpayers themselves.
• Taxpayers passive, ranging from counting, deposit and report its own taxes owed.
• The tax authorities do not intervene and simply watched.
c. With Holding System
Is a system of taxation authorizing a third party (not the tax authorities and not the taxpayer is concerned) to determine the amount of tax payable by the payer.
F. Income Tax
Income Tax Act (VAT) the imposition of income tax on the subject of taxes with respect to income received or earned in the tax year. The tax subject is taxed when you receive or earn income. Subject taxes deriving income in the Income Tax Act is called the Taxpayer. Taxpayers are taxed on income earned or acquired during a tax year or they can be taxed for income tax in the part of the year when the tax liability subjectivity commencing or ending in the tax year.
Personal Income can be categorized as follows:
1. Personal People who earn income from the business or activity
2. Individuals who earn income from (1) the employer
3. Individuals who earn income from work free
4. particular employer: a particular taxpayer conducting business activities in the field of trade or wholesale and retail through a place of business / outlets (outlet) spread across multiple locations that do not receive or obtain any other income that is not taxed are final, and the individual who obtained other income such as interest, dividends, royalties, rents, awards and prizes, profits from the sale / transfer of property (Juanda, 2003).
In Regulation Director General of Taxation No. PER-32 / PJ / 2010 Article 1 is mentioned, the Directorate General of Tax Regulations have the following meanings:
1. Individual Tax Payer Specific Employers are individual taxpayer conducting business as a retailer who has one (1) or more places of business.
2. installment of income tax article 25 is installment income tax in the current tax year for each month that must be paid by the taxpayer as referred to in Article 25 of Law No. 7 of 1983 on Income Tax has been amended by Act No. 36 of 2008.
Taxable
Based on the Income Tax Act 36 of 2008 article 2, paragraph 1 of the fourth amendment on the Income Tax Law No. 7 of 1983, which became the subject of taxes is, Personal, UNESCO, the Agency and Permanent Establishment.
As defined in the Income Tax Act, subject to tax in the Income Tax Act consists of two types, namely:
1. Subject Taxes In country.
a. An individual who resides in Indonesia or individual who has been in Indonesia for more than 183 days within a period of 12 months, or an individual who in a tax year is and intends to reside in Indonesia.
b. Body established housed in Indonesia.
c. Undivided inheritance as a unit replacing entitled.
2. Subject Taxes Foreign Affairs.
An individual who does not reside in Indonesia, located in Indonesia but no more than 183 days in any period of 12 months, and the agency is not established and housed in Indonesia, conducting business or engaged in activities through a permanent establishment in Indonesia.
Tax Object
Tax object can simply be defined as something that is taxed where it is to be met by the subject of taxation. Taxable income can be divided into several categories, namely :.
1. Object Income Tax.
a. Income received on a regular basis, can include salaries, wages, monthly pension, etc.
b. Income derived in an irregular manner, such as commissions, bonuses, production services, etc.
c. Imports of goods and / delivery of goods
d. Imports of goods are exempt from import duties
e. Dividends, royalties, or interest, eg, premiums, discounts, etc.
2. Objects of Value Added
Objects in this category is the delivery or activities undertaken by PKP (employers Taxable). The delivery of goods and services can be taxed if:
• What is delivered is the BKP (taxable goods) or JKP (Taxable Services)
• Delivery of goods and / services carried out in the Customs Area
• Actions undertaken submission PFM taxable delivery.
• Delivery of goods and or services performed in the company or work everyday.
3. Objects and Building Tax
Definition of Object UN is immovable, in the form of the earth (could include the earth's surface, land and inland waters and territorial sea of Indonesia and all contained therein) and building (in terms of taxation building is defined as a construction technique that is planted and look in permanently on land and / marine).
4. Objects Customs Acquisition of Land and Buildings
Objects BPHTB (Bea Acquisition of Land and Building) is the acquisition of land and buildings that can be ground (even including the crop top, land and buildings, and buildings. These objects can only be imposed BPHTB.
5. Object Stamp Duty
Which could be subject to stamp duty is the document. Document itself in terms of taxation can be interpreted as a paper containing writings that carries meaning and purpose of the deeds, circumstances, or the reality for a person and the parties that have an interest.
Based on Law 17 of 2000 Article 4, which included places are income tax, which is additional economic capability received or accrued by the taxpayer, whether originating from Indonesia and outside Indonesia, which can be used for consumption or to increase the wealth of Mandatory tax is concerned, the name and in any form.