√ Definition of Taxes, Functions, Characteristics, Principles, Elements and Classification of Types
Definition of Taxes, Functions, Characteristics, Principles, Elements and Classification of Types - In this discussion we will explain about taxes. An explanation that includes tax reduction, tax functions, tax characteristics, tax principles, tax elements and classification of tax types which will be discussed in full and easy to understand.
Definition of Taxes, Functions, Characteristics, Principles, Elements and Classification of Types
For more details, please see the review below carefully.
Definition of Tax
According to Wikipedia, Taxes are people's contributions to the state based on law, so they can be forced, without receiving direct remuneration.
Tax Function
The function of the tax is as follows:
Budget Function
In the tax budget function it functions as a budget or budgetair where taxes are used as a system for optimally inputting funds into the state treasury based on existing laws apply.
Regulatory Function
In the regulatory function (Regulerend) of the state economy, this is for the benefit and progress of the state. The regulatory function is carried out by utilizing tax funds to the fullest extent possible.
Equalization Function
By quoting taxes there will be an even distribution of income for the population, because the proceeds from the levies can be used for various development activities.
Stability Function
In the stability function. Taxes serve to stabilize the country. For example in controlling price inflation or price increases.
Revenue Redistribution Function
Taxes that have been collected by the state will be used to finance all public interests, including for finance development in order to create jobs, which in turn can increase income public.
Tax Features
The following are the characteristics of the tax.
- It is a contribution from the people to the state
- Used as a source of government financing to prosper the people
- Tax collection is based on the law so that the collection of contributions can be forced
- Tax results are not felt directly by taxpayers, but are felt in general, because taxes are used for the public interest, not for individual interests.
Principles of Tax Collection
In taxes there are collection principles that must be considered, namely:
Justice (Equality)
The tax collection process must be fair, which means that all taxpayers have the same rights and obligations in taxation, there is no discrimination. But the collection of taxes must remain in accordance with the ability of the taxpayer. Therefore, in this concept there are two justice:
- Horizontal Justice: Taxpayers who have the same income and dependents must have the right and the same obligation without any discrimination and no consideration of type and source income.
- Vertical Justice: is that tax collection is carried out fairly and in accordance with economic conditions and the ability of the tax subject.
Clarity
Everything in taxation activities must be detailed, the taxpayer must know how much tax must be paid by them, when is the payment and the deadline for payment of the said tax clear. This clarity will make taxpayers aware of legal certainty, rights and obligations they have in taxation activities.
Convenience
Convenience of taxpayers must be considered in the implementation of tax collection so as not to complicate them in fulfilling their obligations. The point is that taxpayers are not made difficult in paying taxes. For example, taxes are paid when new taxpayers get income, not when conditions are difficult. This principle has the goal that tax payments are carried out in accordance with the rules.
Economics
In tax collection, the costs that must be incurred are as minimal as possible, but can generate maximum cash. This principle has a goal so that the government can adjust the tax system with revenue collection.
Tax Element
In taxes, there are several elements that must be known, namely:
-
Taxpayer
Taxpayers or tax subjects are individuals or entities that are required to pay taxes on the basis of tax laws and regulations. Every taxpayer is required to have a Taxpayer Identification Number (NPWP) as an identity in activities that have certain rights and obligations. -
Tax object
The tax object is something that is the target or target of tax payments. For example salaries, vehicles, and so forth. -
Tax Rates
The tax rate is the amount of tax that has been assigned to taxpayers based on the principle of fairness. Tax rates are divided into three, namely:- Fixed Rate: Is a tax rate whose amount is fixed regardless of the size of the tax object.
- Proportional Rate: Is a tax rate that uses a percentage of the tax object. This percentage is fixed, regardless of the amount subject to tax.
- Progressive Rate: Is a tax rate that is adjusted to the value of the tax object, which means that if the value of the tax object is higher, the tax rate will also be higher.
Tax Type Classification
The following are the qualifications for the types of taxes.
by Subject
Based on the subject, taxes are divided into 2 types, namely:
- Direct Tax: Is a tax that is paid by the taxpayer, it cannot be charged to other parties. An example is Income Tax
- Indirect Display: Is a tax that does not have to be paid by the taxpayer, but can be charged to other parties. An example is the cigarette excise tax, a tax that should be paid by tobacco companies, but is borne by consumers/buyers of cigarettes.
According to the Collecting Agency
Based on the tax collection agency, taxes are divided into two, namely:
- Central Tax: Is a tax that is collected by the central government directly and is used to finance state expenditures. An example is the Land and Building Tax (PBB)
- Regional Tax: Is a tax that is collected by the regional government and is used to finance the expenditure of the regional government. The example is:
a. Provincial taxes, for example the vehicle fuel tax
b. Regency or city taxes, for example taxes on hotels
By Nature
Based on the nature, taxes are divided into two types, namely:
- Subjective Tax: Is a tax that takes into account the condition of the taxpayer. Like taxes for people who are married or for people who are not married, of course the taxes issued are different.
- Objective Tax: Is a tax whose collection is based on the tax object without regard to the condition of the taxpayer. For example, land and building taxes are based on land area/building area, regardless of the condition of the owner.
Thus has been explained about Definition of Taxes, Functions, Characteristics, Principles, Elements and Classification of Types, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read our other articles
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