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The Theory of... (Implementation)

Written By irul on Thursday, April 16, 2009 | 5:45 AM

... (3)The Income Tax

Income Tax (Income Tax) is a direct tax levied against the subject tax (Individual, Agency, Form of Business Stay (BUT)) on received or obtained in the tax year. According to Munawir (2002:109) "Income tax is one source of state revenues come from income people, have been set with the laws so that they can provide appropriate legal certainty of life in the country based on law.

Based on Article 1 of Law. 7 in 1983 that changed with the last Director General of Taxes Decree No. PER-15/pj./2006 guidance on the implementation of the cutting, and for the reporting of income tax article 21 and article 26 in relation to employment, services and activities of private persons definition states that income tax is a tax levied against the subject of tax on earned income, or obtaining Number in years.

4. Subject Number

In Act No Taxes. 17 In 2000 the subject of chapter 2 of the tax into two, namely:

a. Subject of Domestic Taxes

1) The time that he lived in India or in Indonesia more than 183 days in a period of 12 months or a private person in a tax year are in Indonesia and have intention to live in Indonesia.

2) the established or held a position in Indonesia.

3) Inheritance is not divided as a unit are entitled to replace.

Subject of Domestic Taxes levied tax revenue received or obtained from either Indonesia or overseas (world wide income / residency basis).

b. Subject Number of Foreign Affairs

1) People who do not personally live in India or in Indonesia, no longer than 183 days in a period of 12 months, and

2) Agency is not established and does not take place position in Indonesia.

Subject Number of Foreign Affairs (SPLN) income tax levied only on income received or obtained from India through the form of Business Stay in Indonesia (source principle).

5. Objects Income Tax

Law. 17 In 2000 article 4 which states that a tax is the object of every additional economic capability received or obtained Obligation Number originating from Indonesia and outside Indonesia, which can be used for consumption or increase the property tax is mandatory, with the name and in any form, including:

a. Replacement or compensation in connection with the work or services received or acquired, including salaries, wages, allowances, honorarium, commission, bonus, dividend, pension, or other form of remuneration, unless otherwise specified in the law.

b. Gifts from the ballot or the work or activities, and awards.

c. Operating income.

d. As sales or profits because of the property.