Types of Taxes in Indonesia

Types of Taxes in Indonesia

Types of Taxes in Indonesia : Tax is one of the sources of state income. If a country does not have a good tax system, then development will be difficult to realize. Taxes are coercive and taxpayers do not get a direct reward. Taxes are returned to the community in the form of security protection, social welfare programs, to health services.

The types of taxes in Indonesia are grouped based on the method of collection, nature, and collecting agency. The following are the types of taxes in Indonesia: Taxes Based on Methods of Collection Taxes based on the method of collection are divided into two types, namely: Direct Taxes: Taxes whose burden is borne by the taxpayer and cannot be transferred to other people.

The tax payment process must be carried out by the taxpayer himself. A child’s tax cannot be transferred to his parents. A husband may not transfer his tax obligations to his wife. Indirect Tax: A tax whose burden can be transferred to another party because this type of tax has a tax assessment letter. Tax collection is not carried out periodically, but based on events so that the payment can be represented.

Taxes Based on Their Nature Types of taxes according to their nature are divided into two, namely subjective taxes and objective taxes. Objective tax is a tax that stems from the subject, while objective tax is a tax that originates from the object.

Subjective tax is a levy that takes into account the state of the taxpayer. An example of a subjective tax is income tax or income tax. Income Tax pays attention to the ability of taxpayers to generate income or money. Meanwhile, objective tax is a levy that takes into account the value of the tax object.

Value

An example of an objective tax is value added tax or VAT on an item that is subject to tax. Taxes Based on the Collecting Agency.

Also, Taxes based on the institution that collects them are divided into two types, namely: Central Taxes Central taxes are taxes collected and managed by the central government. Most are managed by the Directorate General of Taxes.

The proceeds from the central tax are used to finance state expenditures such as road construction, school construction, health assistance, and others. The following taxes are managed by the central government: Income tax or PPh. Value added tax or VAT. Sales tax on luxury goods or PPnBM. Stamp duty. Land and building tax or PBB (plantation, forestry, mining).

Regional Taxes Regional taxes are taxes collected and managed by local governments, both at the provincial and district or city levels. Proceeds from local taxes are used to finance local government spending. The administrative process is carried out at the local tax office.

The following taxes are managed by local governments: Provincial taxes: Motor vehicle taxes. Tax on the return of motor vehicle names. Motor vehicle fuel tax. Surface water tax. Cigarette tax. City or county tax: Hotel tax. Restaurant tax. Entertainment tax.

Also Advertisement tax. And then Street lighting tax. Further, Tax on non-metallic minerals and aid. Parking Tax. Groundwater Tax. Swallow’s nest tax. Rural and urban land and building taxes. Fee for the acquisition of land or building rights. Land and building tax or PBB (rural and urban).

Taxes