SUBJECT AND OBJECT OF TAXATION

By :
I Nyoman Adi Wiyarna (1506305015)
Gentha Putri Wardana

(1506305095)

Putu Nadiani Putri Utama

(1506305130)

Udayana University
2015/2016

TABLE OF CONTENTS
Table of contents..................................................................................................................2
Chapter 1 Introduction.........................................................................................................3
1.1 Background..........................................................................................................3
1.2 Problems...............................................................................................................3
1.3 Goals....................................................................................................................3
1.4 Benefits................................................................................................................3
Chapter 2 Content................................................................................................................4
2.1 Theories that Supports Collecting of Taxation ....................................................4
2.2 Jurisdiction in Collecting Tax..............................................................................5
2.3 Stelsel Tax............................................................................................................6
2.4 Classification of the Tax.......................................................................................7
2.5 Collecting Tax System.........................................................................................8
Chapter 3 Conclusion and Suggest....................................................................................10
3.1 Conclusion.........................................................................................................10
3.2 Suggestion..........................................................................................................10
Bibliography.......................................................................................................................11

CHAPTER I
INTRODUCTION
1.1 Background
1.2 Problems
1. What is Subject of Taxation?
2. What is Object of Taxation?
1.3 Goals
1.

To know Subject of Taxation

2.

To know Object of Taxation

1.4 Benefits
To help the student know about Subject and Object of Taxation and to fulfill the
taxation subject task.

CHAPTER II
CONTENT
3

2.1 Subject of Taxation

Subject of taxation is parties (person or entity) to be taxed. Income tax or commonly
said as PPh is a subjective tax that imposed taxes because there is a subject, which comply
with the criteria set out in tax laws.
Subject taxes can be expressed as follows:
a. Personal
The citizen which may reside in Indonesia or outside Indonesia.
b. An undivided inheritance as a unit replacing entitled
In this case the undivided inheritance as a whole is subject to tax substitute, replacing
those who are eligible are heirs.
c. Institution
Institution as an object of taxation includes business or non-business entities.
Institution as a subject is not only engaged in the business for profit but also engaged
in social, and so on, along with the establishment stance was confirmed by the
authorities. Institution as a subject of the tax :
Limited Partnership (Perseroan Terbatas)
Commanditaire Vennootschap (Perseroan Komanditer)
State-owned enterprises (BUMN and BUMD) or enterprises with other name and
form
Alliance
Company or association
Firm
Partnership
Cooperative societies
Foundation
Institution
Pension funds
Permanent establishment
Other institutions.
d. Permanent Establishment
Permanent Establishment ( Bentuk Usaha Tetap/BUT ) is a business that is used by an
individual who does not reside in Indonesia or in Indonesia less than 183 (one
hundred and eighty-three) days within a period of twelve (12) months, or also entities
not established or domicile in Indonesia for conducting business or conducting
activities in Indonesia. BUT can be in the form of:
a. Place of management;
b. Branches of company
c. Representative office
d. Office building
4

e. Factory
f. Workshop
g. Mining and extraction of natural resources, drilling work area used for mining
exploration;
h. Advertising, agriculture, animal husbandry, agriculture or forestry
i. Project construction, the plant or assembly project
j. The provision of services in any form by an employee or by anyone else, all made
more than sixty days within a period of twelve months;
k. The person or agent acting as an agent whose position is not free
l. Agent or employee of an insurance company that is not established and is not
living in Indonesia who received the premium or risk in Indonesia.
2.1.1 Kinds of Subject of Taxation
In Undang Undang PPh, the tax subject consists of two types of income tax and can be
described as follows:
1. Tax Subject in Domestic
Tax Subject in Domestic is the tax subject who physically was located or residing or
domiciled in Indonesia. Which is determined as follows:
a. Tax Subject of Personal ( Subjek Pajak Orang Pribadi ) :
An individual who resides in Indonesia or individual who has been in
Indonesia for more than 183 (one hundred and eighty-three) days within any
period of 12 months. The time period should not start from the month of
January or the beginning of the tax year but could be later, and does not have
to be consecutive - were 183 (one hundred and eighty-three) days within a

period of twelve (12) months.

An individual who in a tax year are in Indonesia and intends residing in

Indonesia
b. Tax Subject of Institution
The Institution that established or domiciled in Indonesia, except for certain units
of government entities that meet the following criteria:

It was established under the provisions legislation

Financing is sourced from the State Budget or Budget Revenue and

Expenditure

The reception is included in the budget of the Central Government or Local

Government

The books examined by functional supervisory bodies of the state; and

5

c. Tax Subject of Inheritance

Undivided inheritance as a unit, replace entitled.
2. Tax Subject in Abroad
Things included as the tax subject in Abroad is as follows:
a. An individual who does not reside in Indonesia or are in Indonesia, but not more
than 183 (one hundred and eighty-three) days within a period of twelve (12)
months and the entities are not established or domiciled in Indonesia
b. An individual who does not reside in Indonesia or are in Indonesia, but not more
than 183 (one hundred and eighty-three) days within a period of twelve (12)
months which the entities are not established or domiciled in Indonesia to receive
or obtain income from Indonesia instead of conducting business or engaged in
activities through a permanent establishment in Indonesia.

2.1.2

Subjective Tax Liabilities

The tax liability of subjective individual or entity begins at the time the individual
or entity deriving income from Indonesia and ends at the time no longer accept or
earn such income .
Table of start and end of the subjective tax liabilities
Start
Tax Subject of Personal in Domestic

When were born

While in Indonesia or reside in

Indonesia

Tax Subject of Institutions in Domestic

When established or domiciled in

Indonesia

End
Tax Subject of Personal in Domestic

When die

When leaving Indonesia for ever

Tax Subject of Institution in Domestic

When

dissolved

or

no

longer

domiciled in Indonesia

Tax subject in Abroad through BUT

Tax Subject in Abroad through BUT

when conducting business or engaged

in

activities

through

BUT

in

or engaged in activities through BUT

Indonesia

in Indonesia

Tax subject in Abroad not through BUT

When

receiving

income

Tax subject in Abroad not through BUT

from

Indonesia
Undivided inheritance

when no longer conducting business

When not receiving income from

Indonesia
Undivided inheritance

When undivided inheritance arises

When

the

inheritance

has

completed distribute

2.1.3 Parties Which is Not Including as Tax Subject

1. Representative offices of foreign countries
2. Officials of diplomatic representations and consulates or other officials of foreign
countries , and those seconded to those who work in and live with them , the
requirement is not a citizen of Indonesia and in Indonesia does not receive or earn
income outside the office or work as well as the country in question provides
reciprocal treatment
3. International organizations , with requirement:
a. Indonesia became a member of the organization;
b. Do not run a business or other activity to earn income from Indonesia in addition to
lend to governments with funds derived from contributions of the members.
4. Officials representatives of international organizations with requirement is not a
citizen of Indonesia and does not run a business , activities , or other work to earn
income from Indonesia .

2.2 Object of Taxation

7

been

Objects of income tax is the income, according to the Undang Undang PPh is any
additional economic capability received or accrued by the taxpayer, both from Indonesia and
outside Indonesia, which can be used for consumption or to increase the wealth of the
taxpayer name and in any form.
Income taxes are included as an object in accordance with pasal 4, paragraph (1) of the
income tax has been given a description of the object of income tax is as follows;
1. Payment or compensation in respect of employment or services received including
salary, wage allowances, honoraria, commissions, bonus, gratuity, pension, or
compensation in any other form, unless otherwise stipulated by Undang Undang
PPh.
2. Gift of sweepstakes or work or activities and awards.
3. The operating profit
4. Gains from the sale or transfer of property, including:
a. gains from transfer of property to The company, a partnership, and other agencies
as exchange for shares or capital;
b. gains from transfer of property to shareholders, partners, or members acquired
company, association, and agencies more;
c. gains from a liquidation, merger, consolidation, expansion, split takeover
business, or reorganization under the name and in the of any sort;
d. gains from transfer of property in the form of grants, assistance or donations,
unless given to run in families in the lineage straight one degree and religious
bodies, agencies education, social agencies, including foundations, cooperative, or
an individual who runs micro and small enterprises, the provisions set
Further to the Regulation of the Minister of Finance, so long as no relationship
with the business, employment, ownership, or control of the the parties concerned;
and
e. The gains from the sale or transfer part or all of mining rights, pins participated in
the financing, or capital in mining companies.
5. The receipt of refunds of tax payments deducted as expenses
6. Interest includes premiums, discounts and rewards for underwriting debt
7. Dividend, with name and any form, including dividends from insurance companies to
policyholders, distribution of the results of a cooperative
8. Royalties
9. Rent and other income in connection with the use of property
10. Receipt or acquisition of periodical payments
11. The gain from discharge of indebtedness
12. The foreign exchange gains from foreign currency
13. The difference from revaluation of assets
14. Insurance premiums
8

15. The contributions received from the association of members consisting of a taxpayer
who carries on business or independent, as long as the contribution is determined by
the volume of business activities or independent members
16. Additional net wealth derived from income that has not been taxed.
17. Income from business based on Syariah. Syariah-based business activities have a
philosophical foundation different business activities that are Conventional. However,
income received or by operating activities based on syariah nevertheless a tax.
18. In exchange rates
19. Surplus of Bank Indonesia. Surplus Bank Indonesia which is the object of Taxes
Income is the surplus of Bank Indonesia by audited financial statements after
adjustment or fiscal correction in accordance with the Tax Act Income by observing
the characteristics of the Bank Indonesia.
2.2.1 Things Which is Not Included as Object of Taxation
According to pasal 4 paragraph (3) of the income tax is not included tax objects:
1. a. Assistance or donations, including zakat received by amil zakat board or other
amil zakat institutions established or approved by the government and received
by recipients who are entitled or compulsory religious donations for recognized
religions in Indonesia, which was accepted by the institution religious
established and approved by the government and received by recipients who are
entitled, the provisions stipulated by or based on government Regulation
b.Hibahan property received by the family of flesh within one degree of direct
lineage, religious bodies, educational bodies, charities including foundations,
cooperatives, or private persons who run micro and small businesses, the
provisions stipulated by or based on the Minister of Finance, along no
association with the effort, work, ownership, or control between the parties
concerned
2. Inheritance;
3. Property including cash deposits received by an entity as a stock replacement or as
a substitute equity capital;
4. Replacement or compensation in connection with work or services received or
acquired in kind and / or enjoyment of the taxpayer or Government, unless given
by not residents Tax, taxpayers are taxed in the final or taxpayers who use a
deemed profit Special (deemed profit);

5. Payment of an insurance company to personal connection with health,

accident insurance, life insurance, endowment insurance, insurance and
scholarships;
6. Dividends or share of profits received or accrued limited liability company as a
taxpayer in the country, cooperatives, state-owned enterprises, or enterprises
belonging to the area, from shares in enterprises incorporated and domiciled in
Indonesia with the provision of:
a. dividends derived from retained earnings reserves
b. for limited liability companies, state-owned enterprises and state-owned
areas receiving dividends, share ownership in the enterprise a dividend at
least 25% of the total issued capital.
7. Contributions received or earned by pension funds establishment was authorized
the Minister of Finance, either paid by employers and employees;
8. Income from capital invested by fund retirement, in the specific areas set the
minister of finance;
9. The share of profits received or accrued by a member of the limited partnership
whose capital is not divided shares, partnership, association, firm, and partnership,
including unit holders ( pemegang unit ) contract collective investment;
10. Income received or accrued by the company venture capital in the form of profit
distribution of the couple business founded and run a business or activities in
Indonesia, with the proviso partner agency these efforts:
a. a micro, small, medium, or which carries on business in the sectors
businesses regulated by or based Minister of Finance Regulation
b. The shares are not traded on a stock exchange in Indonesia
11. Scholarships that meet certain requirements which provisions are further
stipulated by or based on the Minister of Finance;
12. Remaining received or acquired entity or a nonprofit institution engaged in
education and / or the field of research and development, which has been
registered in the institution membidanginya, reinvested in the form of facilities
and infrastructure education and / or research and development, within a
maximum period of 4 years since obtaining the remainder over, the provisions
further regulated by or under Regulation Minister of Finance;
13. Aid or compensation paid by the Agency Social Security to the taxpayer
particular, the provisions stipulated further with or based on the Minister of
Finance.
14. Instant prize in the sale of goods or services along given to all buyers or
end consumer without lottery and prizes received directly by the final consumer at
the time the purchase of goods or services.
10

CHAPTER III
CONCLUSION AND SUGGESTION
3.1 Conclusion

3.2 Suggestion

11

BIBLIOGRAPHY
Mardiasmo. 2011. Perpajakan Edisi Revisi 2011. Yogyakarta: ANDI
http://pengertianmenurutahli.blogspot.co.id/2013/10/yurisdiksi-dalam-pemungutanpajak.html
http://ndeso-go-blog.blogspot.co.id/2012/04/stelsel-pajak.html
https://priceles.wordpress.com/tag/stelsel-pajak/

12