Taxes are people's contributions to the state treasury based on law (so that they can be enforced) without receiving direct remuneration and are collected based on legal norms for the costs of producing collective goods and services to achieve general welfare. So, taxes are the government's prerogative, mandatory contributions collected by the government from the public (taxpayers) to hold state contests and development costs without remuneration that can be directly appointed based on law.

The five main elements in the definition of tax are:
Donations/retributions from the people to the state
Taxes are levied by law
Taxes can be enforced
No leadership or counter-achievement
Used to finance state households (general government expenditure)
The characteristics of tax contained in the definition of tax are as follows:

Tax collection is intended for general government financing purposes in carrying out government functions, both routine and development.
As budgeting or filling the state treasury which is needed to finance government administration, taxes also work as a tool to regulate or implement state policies in the economic and social fields (regulatory function).

The justice system in it
For the income distribution function, the personal income tax rate applied in Indonesia is a progressive tax rate where tall people will be subject to a higher tax rate. The imposition of progressive tax rates is also a manifestation of the carrying capacity theory where taxes are imposed on the community according to their economic capabilities.

In terms of rates, the HPP Law stipulates that annual income up to Rp 60 million is subject to a 5% rate, Rp 60 million - Rp 250 million 15%, Rp 250 million up to Rp 500 million 25%, Rp 500 million up to Rp 5 billion 30%, and above Rp 5 billion the rate is 35%.

Personal income tax rates increase with income. The principle that must be implemented is that those who are more capable (richer) must bear a greater burden from state taxes than those who are less fortunate. So individuals with lower incomes not only pay less taxes, but they pay a smaller proportion of their income in taxes. Of the various types of taxes, progressive income taxes are most in line to increase income equality.

Criminal Sanctions in the Taxation Law
According to the provisions of the Taxation Law, there are 3 (three) types of criminal sanctions, namely:

Criminal Fines
Criminal Cage: V
Prison Sentence
Criminal Fines

Fines are imposed on criminal acts that comply with the provisions of the applicable laws and regulations. If the criminal fine cannot be paid by the person, they will be subject to imprisonment.

Criminal Cage: V
Imprisonment only applies to perpetrators of criminal offenses. Can be applied to taxpayers, tax officials and third parties. The prison sentence imposed on the perpetrator is lighter than imprisonment, because the crime was committed accidentally or as a result of negligence.

Prison Sentence
The principles of imprisonment and imprisonment have similarities, namely depriving a person of their freedom. Imprisonment applies to perpetrators of criminal acts. Imprisonment can be imposed on taxpayers, tax officials and third parties.

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