Individual Taxpayers Are: Following Are The Descriptions

Taxpaypayers (Drazen Zigic)

YOGYAKARTA - Tax is a compulsory contribution from Indonesian citizens that is coercive according to the law. Every citizen, especially those who have met the requirements as a taxpayer (WP), should carry out tax obligations in an ideal time. Tax revenues will later be used for various state needs in order to increase people's prosperity. So, by carrying out our tax obligations, we have participated in creating national development. So the individual taxpayer is?

Every citizen is a taxpayer (WP) who is obliged to carry out tax obligations according to statutory provisions. Taxpayers (WP) are divided into two groups, one of which is individual WP. Where individual taxpayers also have the obligation to report their income through the annual tax return. Where in the Annual SPT it includes tax calculations, tax payments, and tax obligations in accordance with tax laws and regulations in a tax year.

Individual Taxpayers Are..

Tax Consultation (Snowing - Freepik)

Individual taxpayers (WP) are classified into several categories. It is necessary to note that the individual tax (WP) should be different from the tax subject. If the tax subject is an individual who is free to live in Indonesia or outside Indonesia. Individual Tax (WP) should be a tax subject who has earned or earned income. Where is the income sourced from Indonesia or is the income obtained through a Business Entity (BUT) in Indonesia.

According to the criteria, individual taxpayers (WP) are divided into two classifications. That is, it consists of domestic subject taxpayers (WP) and foreign subject taxpayers. Knowing and understanding tax provisions is important for taxpayers to do. Because by understanding tax provisions, taxpayers can properly carry out the tax obligations that are their responsibility.

As a taxpayer (WP), of course, we have obligations and responsibilities that should be carried out. Because every tax regulation and determination has been controlled by the tax law. As a taxpayer, it is an obligation to comply with each of these tax provisions. Get to know the WP requirements that must be done in accordance with the following tax laws and regulations:

Register Yourself

The first step that is important for taxpayers (WP) to do is to register themselves. This is important to do in order to receive a Taxpayer Identification Number (NPWP) as a taxpayer identity (WP).

NPWP acts as a tool in carrying out tax administration. NPWP is also needed as a guide for self-identification or identity of the WP in exercising the rights and obligations it has. The NPWP will be given to WPs who have fulfilled the requirements as limited in the tax law.

Calculating Taxes

Indonesia adheres to the tax self-assessment method. Namely, the taxation method in which the taxpayer (WP) is authorized to calculate, pay and report his own taxes.

In this case, the taxpayer has the responsibility to calculate the amount of tax payable each year in accordance with the applicable tax laws.

Paying Taxes

Taxpayers (WP) are not only obliged to calculate taxes, but also pay taxes. Tax payments must be made in a timely manner according to the time period stipulated in the tax laws and regulations.

Tax Report

Taxpayers (WP) not only have the obligation to calculate and pay taxes, but also report their taxes. This tax reporting is done via Annual Notification Letter (SPT). Where the Annual SPT is required to be submitted before the due date.

So after knowing that individual taxpayers are, see other interesting news on VOI, it's time to revolutionize reporting!