Abstract
There is no disagreement about accountants' expertise in bookkeeping. Initially, the assumed tax policy was meant to alleviate bookkeeping requirements for small and medium-sized businesses that were unable to do so. However, why does the accounting profession benefit from not performing bookkeeping if it has a specific gross revenue? This issue encourages authors to evaluate Indonesia's presumptive tax regulations for accountants' professional services. The objectives of this research are to ascertain why accountants employ Net Income Calculation Norms to determine their income taxes, to assess presumptive tax policies through the perspective of tax collection principles, and to explore more suitable presumptive tax policies for the accounting profession. This study applies a qualitative method, collecting data through in-depth interviews. The findings indicate that the accounting profession's presumptive tax policy fulfills the concept of ease of administration for taxpayers but not the principle of substance over form or revenue productivity. The government should deregulate the policy of Net Income Calculation Norms for Accountant Professional Services so that it maintains consistency with the policy objective of providing presumptive taxation to taxpayers with a certain gross sale.
Highlights
Presumptive taxation is a widely used tax policy in Indonesia to encourage individuals and micro, small, and medium-sized businesses (SMEs) to comply with their tax obligations
Why Presumptive Tax is Preferable by the Individual Accountants? The recording method (NICN) is the primary option in fulfilling their tax obligations prior to bookkeeping for the majority of professional services accountants with a gross turnover of not more than IDR 4.8 billion per year
Recording (NICN) is Easier to Do than Bookkeeping: Ease of administration is the first reason for implementing the presumptive tax policy
Summary
Presumptive taxation is a widely used tax policy in Indonesia to encourage individuals and micro, small, and medium-sized businesses (SMEs) to comply with their tax obligations. Due to the limited ability of individuals and small businesses to perform bookkeeping, the government implemented a presumptive tax policy, an estimation approach for calculating income for tax purposes that eliminates bookkeeping requirements in favor of recording gross revenue or turnover. This taxation system has been successful in lowering tax compliance costs by making the tax base more acquainted with the calculation process and in lowering tax collection costs The government provides simplicity and flexibility for this business sector
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