Tax Refund

Indonesia - From a few questions and comments on this blog entry I still feel a lack of knowledge some readers about what and how the Income Tax. Therefore, in this post I will provide a fundamental explanation of the Income Tax. For those of you who have never learned about taxation in college, I think my writing is no need to read further.

Tax Itself

What is Income tax refund? The question is what I try to answer in my writing this time. Before I explain about what's Income Tax, there is always a good idea to explain my understanding of the tax.

Understanding the tax can be found in Law General Provisions and Taxation Procedures namely Law Number 28 Year 2007. In The Act explained that the tax is compulsory contribution to the coercive state in which the taxpayer will not receive direct compensation for tax returns and tax payments are used for the maximum benefit of the people.

The tax character of this force should be established by Law. This means that the tax is a product representatives for each of the laws discussed in the Parliament and approved by the Parliament. Thus, the tax provision is a positive law, such as laws other, must be obeyed by all the people of Indonesia. In order for these tax provisions can be implemented, the tax laws also usually will set the penalty if the tax provisions are not implemented.

Well, because of its income tax as a tax then he has the strength to force the citizens and citizens as taxpayers cannot claim direct compensation because benefits are indirect taxes on all citizens would enjoy the tax benefits without looking at the amount of tax he paid.

Income Tax Itself

Well, now let's look at understanding the Income Tax Income Tax is usually abbreviated. As a reference, let us look at Article 1 of Law of Income Tax:

Income tax imposed on the Subject of Tax on Income received or obtained in the tax year

Thus, income tax will be imposed on any subject to Tax return refund or obtained in the tax year. Almost all of us as citizens of Indonesia are subject to tax. Are all subject to tax will be charged income tax? No, only that it is subject to income Tax. Does everyone who has income must give income tax? The answer is no, because there are income limits in a year where if a person is still earning below that limit, then he would not be subject to income tax. This limits what we know as taxable income (Taxable Income).

Tax refund estimator

One thing that must be understood is that the income tax calculation done in one particular period of one year. Thus, income tax calculation will be done once a year. Similarly, in the end the tax administration will be done on an annual basis. From this understanding we can also understand that taxpayers will eventually report the calculation of annual income tax so that we know there's Annual SPT 2006, SPT 2007 and beyond. If you need any help ask tax advisor as Tax refund estimator .

Ok. We can conclude that the income tax imposed on any person whose income exceeds the limit of taxable income in one year. Now, what to do with NPWP? NPWP is essentially a tool of government to oversee the tax obligations of citizens. More and more taxpayers into the tax administration system through ownership NPWP the easier it will supervise the government. In this context, emerged the sunset policy where tax laws provide a kind of compensation is not subject to sanctions if they voluntarily signed up to have NPWP.

If someone has a Taxpayer NPWP, so it has an obligation to report the amount of income tax obligations. Report this poured in a special form called the Notice or abbreviated as SPT.