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Home » Tax in Different Regions » Taxation in Indonesia
 

Taxation in Indonesia
Indonesia is one of the major countries in the continent of Asia and that is why this is the country that plays major role in the economics in this continent. Therefore the system of taxation in Indonesia plays the role of immense importance. As far as the tax in Indonesia is concerned this is known as “Pajak”. This is the term that is used by the common people in Indonesian language. In the Indonesian language the word “taxation” is known as “Perpajakan”. Tax plays a huge role in the economic development of the whole of Indonesia.

This is one of the main sources of income for the government of this country and this money is totally spent on the development of infrastructure in this country. There are several states in Indonesia and some of the rules regarding the taxation in Indonesia are different in all the different states whereas some of the other rules are same in all the states. The main idea of taxation in Indonesia is written in the main constitution that is followed in this country. All the rules that are followed in the field of taxation in Indonesia are written in the article 23A. This had been introduced in the year 1945 and after the introduction of these laws the government of Indonesia has taken all the definite steps for the utmost promotion of these laws. They have been made active from the very next day when the laws were released.

There are some of the basic rules that are followed by the government for the maintenance of taxation in Indonesia. They are:

  • Taxes that are dealing with general provisions in Indonesia as well as the taxation procedures law is also included in Law 6 that was released in the year 1983. This law has also been modified in the year 2000.
  • The proper Income Tax Law in Indonesia has been introduced from the year 1983 and after this introduction there were all the arrangements from the government's side for the promotion of this law. This is written in the Law 17.
  • Value Added Tax (VAT) is one of the most important taxes that are taken from the goods sellers in Indonesia. All the rules are written in the Law 18 that has been introduced in the year 2000.
  • Tax Court Law and the Stamp Duty Law are also important from this point of view. Both of them were introduced in the end of the 1980s.
Apart from all these there are laws for the exemptions of taxes in this country. These rules are applied to the people in some of the special cases. Sometimes people are exempted from some of the taxes when they are in dire need of money. This is especially done at the times of natural calamities like Tsunami. All the terms that deal with the field of taxation in Indonesia are written in their own Indonesian language and that is why there are special terminologies that are used in Indonesian tax collecting process.