| The authors would like to, first and foremost, praise and thank God Almighty for the completion of the book entitled Basic Guidelines of Tax Procedures. These guidelines are aimed at providing a comprehensive and systematic understanding of tax procedures by taxpayers, ranging from basic tax procedures, such as taxpayer registration and value added tax registration to special procedures, such as applications for tax clearance certificates. As it stands, Indonesian taxation adheres to the self-assessment system, in which taxpayers calculate, file and pay their tax payable as part of their obligations. The legal basis underlying this system is Article 12 paragraph (1) of the General Provisions and Tax Procedures Law which states “Every taxpayer is obliged to pay the tax payable in accordance with statutory tax provisions, without relying on notices of tax assessment.” In other words, this system tends to focus on taxpayers’ active role in tax collection. With the adoption of the self-assessment system in the Indonesian tax system, adequate tax knowledge constitutes one of the requirements for taxpayers to exercise their tax rights and obligations properly and correctly. These include the correct technical calculations, the preparation, the tax filing processes, what to do in the event of errors in filing, the appropriate time to file and other matters related to the self-assessment system processes. Unfortunately, to date, a handful of taxpayers are not properly and accurately cognizant of these issues. Even though the government has issued the “General Provisions and Tax Procedures Law and its Implementing Regulations”, in reality, some taxpayers continue to experience difficulties in carrying out various tax procedures, even simple ones. The taxpayers’ lack of understanding of these tax procedures is due to various reasons, ranging from the relatively low level of tax awareness to the Indonesian people’s minimum tax literacy. Moreover, statutory tax provisions, as well as tax administrative procedures, are subject to frequent changes. Consequently, taxpayers are required to always stay current with these changes. Whereas, in fact, most taxpayers, specifically, entrepreneurs, do not have the time and even basic knowledge to fully comprehend and handle the aspects of taxation, in particular, in terms of changes. This ultimately affects the level of taxpayer compliance. The results of various studies, among which a survey by the Organizations for Economic Cooperation and Development (OECD) in 2015, have found a positive relationship between tax knowledge and tax compliance. The higher taxpayers’ level of tax knowledge, the more likely tax awareness is to increase, which ultimately leads to greater public tax compliance. The more limited taxpayers’ knowledge, on the other hand, the greater the risk of non-compliant taxpayers. Considering the importance of tax knowledge, this handbook, which contains six chapters, serves as a means for taxpayers to recognize and comprehend tax procedures in a comprehensive and detailed manner, specifically, in terms of various administrative procedures and important tax obligations. This book will first elucidate the concept of tax subjects and taxable objects and end with an explanation of specific tax procedures by taxpayers. In each chapter, this book also includes the legal basis that applies as of 3 May 2021 as the reference in every discussion. This book has also been adapted to changes in statutory provisions resulting from the issuance of Law Number 11 of 2020 concerning Job Creation. In addition, to support the digitalization era currently taking place in Indonesian tax procedures, this book also outlines instructions for various online application systems launched by the Directorate General of Taxes (DGT). The authors wish to thank all those who have supported the publication of this book. The authors also express their gratitude and appreciation to Agung Jati Puspita for his contributions to the materials within this book. Special thanks go to the authors’ beloved families for their prayers and moral support in the process of compiling this book. Last but not least, the authors would also like to thank Daisy Anita for translating this book. Finally, with the publication of this book, the authors hope to make a positive contribution to establishing and developing Indonesia’s taxation. We welcome all constructive suggestions and criticism from readers. Jakarta, 2 January 2022 Darussalam, Danny Septriadi, Khisi Armaya Dhora and Erika |
