Abstract
Purpose The purpose of this paper is to know the relevance between the changes in non-taxable income with the receipt of Income Tax Article 21, Income Tax Article 25/29, the receipt of value added tax and the receipt of luxury sales tax r (PPnBM). Design/methodology/approach Changes in non-taxable income have potentially reduced the receipt of Income Tax Article 21, Income Tax Article 25/29 of individual taxpayers, otherwise it increased value added tax and luxury sales tax receipts. This study used the descriptive qualitative approach, by conducting a simple case study based on actual data. Data analysis technique used is descriptive statistics and comparison analysis. Research conducted at the Kantor Wilayah Direktorat Jenderal Pajak Jawa Timur II. Findings The results show that the changes of non-taxable income in 2013 and 2015 did not affect the receipt of Income Tax Article 21 but the growth is slowed, while the receipt of Income Tax Article 25/29 increased. Originality/value Value added tax and luxury sales tax receipts, increasing every year, slowed down in 2013, but increased higher in 2015.
Highlights
The government has been enforcing various tax instruments, one of which is granting tax incentives
A press release from the Ministry of Finance of the Republic of Indonesia (2015) states that some considerations were made for this adjustment of non-taxable income (PTKP), such as increasing the adjusted Provincial Minimum Wage (UMP) and Regency/City Minimum Wage (UMK) in almost every region, significantly shifting price for necessities as a result of Subsidize Oil Fuel (BBM) adjustment policy, and decelerating the trend of economic conditions
The section of this paper provides the results of the research on the linkages between non-taxable income with Income Tax Article 21, Income Tax Article 25/29 for individual taxpayers, value added tax and luxury sales tax
Summary
The government has been enforcing various tax instruments, one of which is granting tax incentives. A press release from the Ministry of Finance of the Republic of Indonesia (2015) states that some considerations were made for this adjustment of non-taxable income (PTKP), such as increasing the adjusted Provincial Minimum Wage (UMP) and Regency/City Minimum Wage (UMK) in almost every region, significantly shifting price for necessities as a result of Subsidize Oil Fuel (BBM) adjustment policy, and decelerating the trend of economic conditions. These policies were aimed at increasing the people’s purchasing power; this could affect consumption rate and economic growth positively. From 1983 until 1999, provisions of PTKP were set in the Constitution of the Republic of Indonesia Number 7 of 1983 on Income Tax, and, recently, Ministry of Finance Regulation Number 122/PMK.010/2015 on the Adjustment of the Amount of Non-Taxable Income has been enacted
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