Tax Basics

 Judging from history, this tax has existed since time immemorial, but the ancient remains voluntary nature of the people to his king. Further development of it turned into a tribute to the nature of administration imposed Dalma sense that the administration was "mandatory" and is set unilaterally by the State. In other words, that "tax" which was originally a gift turns into charges. This is reasonable because the state will need greater funding in order to maintain the interest of the State of the State to maintain da protect citizens from enemy attack or to carry out the development. Thus the history of tax collection has made changes to the development of society and the State both in the economic, social and state affairs. 

The definition of tax according to Prof.. Dr. Rochmat Soemitro, SH is people's contribution to the state treasury (the transition of wealth from sector to sector partikellir government) under the Act (can be enforced) with the service received no lead (tegen prestatie) directly appointed and are used to finance public expenditures (publieke uitgaven).

 

Elements of Tax:

a. Society dues to the State

b. Under the Act (which can be enforced) in the sense that although the State has the right to levy taxes, but its implementation must obtain the consent of its people is through legislation.

c. Without the services of lead (achievement) of the State which can be directly designated in the sense that the counter-performance provided by the State to its people can not be linked directly with the amount of tax.

d. To finance its general governmental purposes.

Besides collecting taxes, the government also still perform a variety of other charges such as levies, donations, an excise bead.

Tax Function:

Tax serves as a source of state finance (budgetair) but the tax actually has a broader function of the function set (regulerend) in the sense that the tax could be used as a tool to manage or implement the State policy in the economic and social field. With taxes set function is used as a tool to achieve certain goals which were located outside the financial field and function set, many directed against the private sector. 

Terms Withholding Tax:

a. Withholding tax must be fair

b. Tax collection should be based on the Law

c. Not disrupt the economy

d. Efficient tax collection must

e. Tax collection system should be simple

Type of Tax Rates:

1. Proportional Tax Rate

2. Declining Tax Rates 

3. Permanent Tax Tariff

4. Progressive Tax Tariff

Status of Tax Law

Judging from the environment, tax law is part of Public Law, specifically the child part of the State Administrative Law. But there is also the opinion that the Tax Law is an independent science that regardless of the State Administrative Law.

Taxes consist of two types namely:

1. Direct taxes and indirect taxes

2. Local taxes and the tax center.