Simplification of Tax Rules in Government Regulation No. 46 Year 2013

Ease and simplification of the tax code in particular income tax for taxpayers who earn income from a business with a certain turnover is a response to taxpayer complaints towards the difficulty in calculating their income tax. With the enactment of Government Regulation No. 46 Year 2013 (PP 46), it is expected that taxpayers can easily carry out their tax obligations.

Segmentation Taxpayers classified as a tax subject in PP 46 is very large in order to provide an opportunity for the public to contribute to the administration of the state, as well as foster voluntary compliance in paying taxes.

"The object of the income subject to income tax which is final (final income) in PP 46, effective from July 1, 2013 is the income of the business derived by the taxpayer with gross turnover no more than Rp4,8 billion per year. It excludes income from independent personal services such as doctors, lawyers, notaries and others. It also excludes incomes that are subject to final Income Tax such as construction services and rental or sale of assets, land and buildings. The tax subjects in PP 46 are persons and co operations not included Agency Permanent Establishment (PE) who derives income which is object of final income," said Mustadir, Chief of KP2KP Masamba in an Adira FM Radio Talkshow at Remaja Hotel on August 2013.

Exceptions are also individual entrepreneurs in trade and/or services using facilities or infrastructure that can be assembled and using public places as a place of business such as street vendors, hawkers or such a like taxpayers.

The ease and simplicity in calculating the final income is due to the application of the 1% (one percent) tax rate on the circulation of business every month. Only by recording the business cycle, the tax can be easily calculated, especially if the business entity has been obliged to carry out the bookkeeping.

"It is Simple and easy! That's the main purpose of PP 46 in 2013", added Mustadir in two dissemination occasions.

As a form of information services, KP2KP Masamba has distributed PP 46 flyers door to door and provides scheduled tax class every Tuesday and Thursday until October 2013 to give insight to the public.