Indonesian Tax Research Articles

Tax System Optimization: A Comparative Analysis Between Personal Income Tax and Corporate Income Tax in Indonesia

This study adopts a qualitative approach to analyze the comparison between Personal Income Tax (PPh) and Corporate Income Tax (PPh Corporate) in Indonesia. Through literature studies and observations, this study explores the tariff structure, tax relief, and tax compliance level of the two tax systems. The economic implications of the implementation of Income Tax and Corporate Income Tax on economic growth, investment, and income distribution were also discussed. The findings show that tax reform, as stated in the Law on Harmonization of Tax Regulations (UU HPP), has a significant impact in improving the effectiveness and fairness of the tax system. The results of this study provide in-depth insights into the importance of appropriate tax policies to support inclusive and sustainable economic growth in Indonesia.

ACHIEVING THE LEGAL OBJECTIVE OF WITHHOLDING INCOME TAX ON FOREIGN YOUTUBE VIDEO CREATORS FOR VIDEO UTILIZATION INCOME SOURCED IN INDONESIA

<p>One of the digital economy transactions is the transaction on YouTube monetization received by video creators based on viewers in a source country. Overseas video creators do not pay Income Tax (PPh) in Indonesia on income from Youtube videos sourced in Indonesia because there is no physical presence of the video creator in Indonesia and no identified income as a tax object on which the Indonesian tax authorities impose PPh on the overseas video creator. This condition creates legal uncertainty, injustice, and loss of benefit for Indonesia as a source country due to the loss of potential PPh revenue from the digital market. Currently, Article 32A of the General Provisions and Tax Procedures (KUP) Law has provided a formal tax law to be able to appoint other parties as PPh withholders. However, the implementation is not yet possible because the material tax law is not yet sufficient to designate other parties, such as Google, which are not domiciled and have no permanent establishment in Indonesia as PPh withholders. To achieve legal objectives, the PPh Law as material tax law needs to be strengthened to provide legal certainty in the PPh withholding on foreign video creators and create justice and benefits for Indonesia as one of the source countries for video creators' income. Strengthening the PPh Law is conducted by amending the provisions of Article 26, Article 2 paragraph (4), and Article 4. The amendment to the PPh Law does not result in revisions of the P3B Indonesia and other countries since the allocation of taxation rights for royalty income from the source country has been regulated in the P3B. Furthermore, the government could make implementing regulations regarding the PPh withholding by other parties on income from the utilization of content copyrights received by YouTube video creators.</p>

Final tax regression

The urgency of this research lies in the pressing need to address regressiveness in Indonesia's taxation system, particularly concerning the Final Income Tax. As such, this study aims to examine the implications of Final Income Tax on taxpayers, especially high-income individuals, and propose potential reforms to ensure fairness and progressivity in the tax regime. To achieve this objective, the research employs a combination of quantitative analysis and theoretical frameworks. Income data from High-Wealth Individuals (HWIs) is analyzed to assess the regressiveness of the Effective Tax Rate (ETR), with a specific focus on income components subject to Final Income Tax. Additionally, the study reviews existing literature on tax reform and draws insights from international best practices to formulate recommendations for policy improvements. By combining empirical analysis with theoretical insights, this research contributes to a deeper understanding of the challenges within Indonesia's taxation system and offers actionable recommendations for policymakers and Directorate General of Taxes as Indonesian tax authorities.

Implementation of Artificial Neural Networks as a Method for Early Detection of Tax Evasion Behavior in Indonesia

Research Aims: This study aims to analyze the ability of the Artificial Neural Network (ANN) model in early detection of tax evasion behavior in Indonesia. Design/methodology/approach: This study uses a qualitative method with a descriptive approach, the types of data used in this study are primary data and secondary data. Primary data is obtained from the results of interviews to obtain the information needed by the researcher. The interview informants came from the DGT sub-Directorate of Potential, Compliance and Tax Revenue with the initials K&H, tax consultants and taxpayers. while secondary data is collected through the DGT online website and through articles and journals on Artificial Intelligence (AI), Artificial Neural Networks (ANN), tax evasion, and financial information data on income, expenses, amount of assets, taxes payable) and behavioral indicators (tax compliance history, frequency of late reporting, significant changes in financial statements). The data analysis technique used is descriptive analysis, namely data collection, data reduction, data presentation and conclusion drawing Research Findings: The results of this study show that the use of a neural network model can be an effective tool to detect symptoms of tax evasion behavior early. This method allows tax authorities to monitor and identify suspicious activity more efficiently and effectively. Theoretical Contribution/Originality: This study makes a significant theoretical contribution by integrating the use of Artificial Neural Networks (ANN) in detecting tax evasion in Indonesia. The originality of this research lies in the application of ANN in the context of Indonesia's tax system, where the use of advanced technology such as ANN is still relatively new. The study also combines the pentagon's fraud theory, which adds elements of arrogance and competence in the analysis of tax evasion behavior, with a machine learning approach, creating a more holistic and innovative framework

The Role of Law in Taxation Policy as an Economic Control Tool: A Case Study of Tax Amnesty in Indonesia

This study examines the role of law in Indonesia's tax amnesty policy as a means of economic control. Using normative legal research, the study analyzes secondary data from primary, secondary, and tertiary legal sources. The findings reveal that Indonesia's low tax ratio and widespread taxpayer non-compliance, including forgery, underreporting, and asset concealment, remain significant challenges for tax policy. These challenges stem from both suboptimal tax collection mechanisms and taxpayer resistance. Despite the controversy surrounding tax amnesty, the law plays a strategic role in providing legal certainty, encouraging honest reporting, and increasing state revenue, which is essential for national development.

Burp tax: Regulation and revenue potential in Indonesia

The increasingly urgent phenomenon of climate change requires concrete actions from various sectors, including the livestock sector which is a significant contributor to greenhouse gas emissions, particularly methane. This study explores the potential of implementing Burp Tax in Indonesia as a regulatory mechanism to reduce methane emissions from beef and dairy cattle farms. By referring to New Zealand's experience as a Burp Tax pioneer, this study analyzes the policy scheme that includes tax subjects, tax objects, tariffs, and fair and efficient collection mechanisms. In addition, this study identifies various obstacles that may be faced in the implementation of Burp Tax in Indonesia and provides recommendations to support the national commitment in achieving the Zero Emission target in 2045/2060. The research used qualitative methods with literature study data collection techniques. The research concludes that there is great potential for the imposition of Burp Tax, so that in addition to being a form of effort to reduce methane emissions from beef and dairy cattle farms, Burp Tax can also increase the portion of state revenue from the taxation sector. The specific tariff scheme is IDR30/KgCH4 with tax subjects in the beef and dairy cattle farming sector, including individuals with 30 cows and business entities. However, it is important to note that the imposition of Burp Tax may have an economic impact on livestock business actors and affect the price of meat and milk commodities. Therefore, further studies are needed regarding the potential and impact of Burp Tax implications in Indonesia. The results of this study are expected to make a significant contribution to the development of sustainable taxation policies that are responsive to the challenges of climate change.

Automatic Exchange of Information (AEOI) and Modernization of The Tax System for Taxpayer Compliance in Indonesia

The economy in Indonesia approximately 75% comes from tax. With an advanced tax system, it can support the government in optimizing tax collection, both individual taxpayers and corporate taxpayers, so that by doing so, it provides optimization of existing taxation in Indonesia, providing good and positive affirmations to the country’s economy. This research was conducted to see and observe significantly and exploratively the existing tax system in Indonesia is adequate to maximize the level of optimization of tax collection in Indonesia. The data used to answer the problems and phenomena of the questionnaire premier data. The sample used was respondents of individual and corporate taxpayers randomly. The analysis method used is to analysis construct model testing to see the findings of each indicator component with Taxpayer Compliance. The test equipment used Smart PLS 3.0. Based on the analysis of existing data, it was found that the variables AEOI, E-Billing, EInvoice and E-Filling did not have a significant influence on Taxpayer Compliance, then for the variables ERegistration and E-SPT gave a significant influence on Taxpayer Compliance.

Mapping the implementation of carbon tax in Indonesia: Literature review and optimisation strategies

This research aims to map out how to achieve optimisation of carbon tax implementation in Indonesia based on the framework of carbon tax implementation in developing countries. The research is conducted through a literature study, by reviewing theories and findings from other researchers related to carbon tax implementation, application, positive impacts, and negative impacts. The study highlights the importance of establishing an effective carbon tax policy to reduce emissions and combat climate change, while also considering the challenges of limited data and capacity, social impacts, and coordination between ministries. This study also discusses the current condition of carbon tax implementation in Indonesia and discusses policy recommendations for optimal implementation. The results show that the current condition implementation carbon tax in Indonesia still has many things that need to be considered so that it can be optimised. This research is expected to contribute to the literature on carbon tax implementation in Indonesia and provide considerations for the Ministry of Finance in formulating carbon tax implementation policies.

Determinants of Tax Regulations Referring to ESG Principles on Company Performance in Indonesia

Purpose: This study examines ESG integration in Indonesia's tax regulations and their impact on financial performance, focusing on green investments.Method: This study uses a qualitative case study method to analyze ESG integration in Indonesia's tax regulations, focusing on policies, carbon tax effectiveness, and emissions disclosure. The research is based on corporate legitimacy and institutional theories to explore the relationship between tax regulations and sustainable practices.Findings: The study's findings reveal significant growth in green investments in Indonesia, largely driven by supportive ESG-oriented tax policies. Despite this progress, challenges such as limited corporate awareness and data availability remain barriers to fully realizing the potential of these policies. The analysis also highlights the importance of these regulations in fostering sustainable business practices, particularly in industries like palm oil that are crucial for addressing climate change.Novelty: This research uniquely examines the impact of ESG-focused tax regulations on green investments and sustainable practices in Indonesia, using corporate legitimacy and institutional theories. It fills a literature gap by exploring how tax regulations drive ESG integration in the business sector of a developing country.Implications: The study has important implications for policymakers, businesses, and stakeholders in Indonesia and similar economies. It shows that ESG-focused tax policies positively impact green investments, suggesting that refining and implementing these policies could strengthen sustainable business practices and support environmental goals. The study also emphasizes the need for greater corporate awareness and better data collection to address challenges and ensure effective ESG integration in the corporate sector.

Tax Dispute Analysis of Incorrect Vat Payment on Offshore Royalty Viewed From the Ease of Administration Principle (Case Study of PT X)

The purposes of this research are: (i) to analyse basic considerations from the Indonesian Tax Authority (ITA) in making regulations regarding the incorrect transfer of VAT on taxable services from outside customs territory which cannot be overbooked; and (ii) to analyse whether the administrative sanctions penalized to the taxpayer are appropriate from the ease of tax administration principle’s perspective. This study is using (i) VAT imposition on intangible taxable goods and services from outside the Indonesian customs territory; (ii) Ease of Administrative principles: certainty, efficiency, convenience of payment, and simplicity as theoretical references. The research is categorized as applied study with a qualitative method using qualitative data collection techniques through literatures and field studies (interview with various key informants from ITA, representatives of the taxpayers, and taxation experts and academia. The qualitative analysis on data/information was done via triangulating process with related theories, VAT laws and regulation, as well as expert opinions. Results of the study conclude that the basis of considerations of the ITA makes regulations for the utilization of Intangible Taxable Goods and Taxable Services from Outside the Customs Territory, which cannot be done with overbook because both offshore VAT objects are difficult to detect and can be used for tax avoidance modus by the taxpayers. The ownership of documentary evidence is actually a foreign party while the person who is supposed to make a transfer request is the owner of the document evidence, and the tax that has been deposited has become a tax credit and will not move to another place other than the state treasury because the tax credit is the taxpayer's right. Considerations taken by ITA have not met the theory of good tax administration because there has been no legal formulation related to this matter and ITA's accountability is still considered to be lacking in terms of supervision and control. Administrative sanctions penalized to PT X due to tax deposit errors are not in accordance with the ease of tax administration principle. Even though it is certainly stipulated in the prevailing law and regulation, but the procedure is so lengthy and detrimental to the taxpayer, increase and disrupt cash flow for business activities carried out by PT X. In terms of efficiency principle, the rejection of overbooking process creates additional compliance costs to the taxpayer, namely: fiscal financial cost, time cost and psychological cost and denial the facts that actually the fund/money have been transferred to the State Treasury. Implications of research: To provide examples of practice in the field of how complicated tax administration procedures can cause unnecessary losses for taxpayers if the tax regulations are not made by taking into account the principle of ease of tax administration. It is also recommended that the tax authorities should reduce administrative burden for the implementation of rights and fulfillment of tax obligations that are too rigid to be more friendly in order to make it easier for taxpayers to carry out their tax obligations and make themselves a facilitator for taxpayers to increase cooperative tax compliance. Originality/value: Ease of carrying out tax obligations for taxpayers must be something that is facilitated by the Tax Authority rather than being subject to penalties and this can be done, one way, through the application of the principle of ease tax administration in the formulation of tax regulations.

Influence of Micro, Small & Medium Enterprises Taxpayer Compliance Factors in Bandung

The Indonesian State Revenue and Expenditure Budget (APBN) is primarily funded by taxes. There are 65.5 million micro, small, and medium-sized enterprises (MSMEs) in Indonesia, making them a sector with a significant potential to assist with tax payments. In order for MSMEs to actively participate in taxation, the government continues to provide various facilities. The Indonesian tax self-assessment system, on the other hand, grants the taxpayer authority to determine the amount of tax owed, which necessitates the taxpayer's awareness and complete compliance. As a result, research was conducted on the factors that influence MSME taxpayer compliance, using tax knowledge, taxpayer awareness, and taxpayer motivation as the variables. Using a purposive sampling strategy, this study selected 100 MSMEs from Bandung with diverse industrial backgrounds and characteristics as the sample population. This study employs quantitative and explanatory analysis methods, as well as a questionnaire as the research medium. PLS-SEM was also used for analysis, and two assessments, the measurement model (validity) and the structural model assessment, were performed. This study found that taxpayer awareness has no significant impact on tax compliance, while tax literacy and taxpayer motivation have a significant impact. Accurate tax reporting and payment are supported by solid literacy. Because taxpayers are unaware of government losses, their awareness has less of an impact. Compliance is largely driven by internal and external motivation

ANALISIS KEPATUHAN PAJAK PENGHASILAN PASAL 21, PASAL 23 DAN PASAL 4 AYAT 2 PADA PT ABC TAHUN 2023

This research aims to analyze PT's compliance. ABC, a company that provides hotel information services, against Indonesian tax regulations. The main focus is on payment and reporting of Periodic Tax Returns for PPh Article 21, PPh Article 23, and PPh Article 4 paragraph 2. Apart from that, this research also aims to identify problems faced by the Accounting Services Office (KJA) which is responsible for this aspect. corporate taxation. The research method used is descriptive qualitative using primary data consisting of Periodic Tax Returns, proof of payment, as well as equalization documents for PPh Article 21, PPh Article 23, and PPh Article 4 paragraph 2 PT. ABC and secondary data from interviews with two informants, namely supervisors and senior staff at KJA. The research results show that overall, PT. ABC was less compliant in fulfilling their tax obligations in the three aspects investigated. Several cases of delays in tax payments and reporting were found, as well as corrections in tax calculations carried out by PT. A B C. Delays in submitting data and changes in data that are not immediately reported as well as a long payment application process within the company are problems faced by the Accounting Services Office (KJA) as a tax consultant for PT. A B C.

LEGITIMATE POWER AS A MEDIATOR OF THE INFLUENCE OFKNOWLEDGE AND PROCEDURAL JUSTICE ON TAX COMPLIANCE

This study analyzes the influence of taxpayer knowledge and procedural justice on tax compliance. This study also analyzes the role of power legitimacy as a mediating variable. Legitimacy of power is expected to mediate the influence of taxpayer knowledge and procedural justice in increasing taxpayer compliance. This research is quantitative research that tests hypotheses using primary data through distributing questionnaires. The population in this research is individual taxpayers who carry out business activities and tax consultants who are members of the Indonesian Tax Consultants Association (IKPI). The sampling technique uses convenience sampling. Hypothesis testing uses SEM PLS statistical tools by conducting path analysis tests to obtain results of the direct influence of taxpayer knowledge and procedural justice on tax compliance and the indirect influence, namely taxpayer knowledge and procedural justice on tax compliance through the mediating variable power legitimacy. These results of hypothesis testing prove that taxpayer knowledge and procedural justice each have a positive effect on power legitimacy and tax compliance. Besides that, power legitimacy also plays a role in mediating the influence of knowledge and procedural justice on tax compliance. This research can prove the theory of planned behavior that the behavior shown by a person arises because of the individual's inner intention to behave. The research implication from the theoretical aspect is that it can prove the role of power legitimacy as a mediating variable that links the influence of knowledge and procedural justice on tax compliance.

Digital tax reform in Indonesia: Perspective on tax policy development

In Indonesia tax reform has undergone multiple revisions in recent years, all within a brief timeframe. Digital tax reform in Indonesia began with significant milestones in recent years to adapt to the digital economy’s challenges. The specific start date for digital tax reform in Indonesia can be traced back to the passing of the Tax Regulations Harmonization Law on 7th October 2021, which officially became Law No 7/2021 on 29th October 2021. This law marked a crucial step in Indonesia’s journey towards modernizing its tax system to address the implications of the digital economy. The provisions of this law have varying effective dates, such as for income tax purposes from the 2022 fiscal year and for VAT purposes from 1st April 2022. These changes under the Tax Regulations Harmonization Law are extensive and wide-reaching, signifying a pivotal moment in Indonesia’s digital tax reform efforts. This shows that the Indonesian government intends to radically overhaul the tax system, yet there are inconsistent approaches to deciding on the long-term course of tax policy. It is critical to investigate the concept of tax legislation in Indonesia in order to provide legal clarity on digital tax reform. Normative juridical research methodology is employed, together with a qualitative research strategy and descriptive-analytical research specifications. The findings suggest that the Indonesian government’s efforts to establish strict policies governing taxes on digital activity are inadequate and uneven. In order to apply to digital platform enterprises, the definition of permanent establishment as outlined in a number of national regulations must incorporate a substantial economic presence criterion. Legislative progress toward the establishment of a framework for digital tax collection is necessary to mitigate the possible income loss of states in this area, which could result from the rapid advancement of information technology. The OECD consensus is still in the process of drafting an international tax reform that will require adjustments from national tax reform. Therefore, it is imperative that the Indonesian government establish a thorough framework for tax regulation that can ensure robustness, economic efficiency, fairness, against motivation compatibility, administrative ease, and avoidance.

Addressing The Importance of Financed Emissions to The Indonesian Financial Sector

Business trends, including the disclosure of financed emissions, drive more precise sustainability reporting. Financed emissions are greenhouse gas emissions from activities or projects sponsored by financial institutions, such as banks, insurance firms, pension funds, and other financial institutions. This concept emerges from an examination of the function of a financial service institution in distributing capital to companies that emit emissions or have a high carbon footprint. This study aims to examine the phenomenon of financed emissions and formulate policy recommendations to disclose financed emissions in Indonesia. Employing a systematic literature review approach, this study discovered various emission accounting standards, including the GHG Protocol, PCAF, and new standards developed by the ISSB and TCFD. The issuance of green bond instruments, sustainable loans, and the formation of carbon exchanges all contribute to Indonesia’s emission accounting reporting regime. Policy recommendations include the development of environmentally sound KYC policies for financial services institutions, the synchronization of business classification according to the Green Taxonomy or KUBL, and proposals for investment emission intensity taxation in Indonesia. However, hurdles to financed emission disclosure include data quality, complexity of the finance transaction structure's complexity, the technology's equivalency, and incomplete standard setting.

A Study on Management of Administrative Challenges and Market Strategies in the Implementation of Carbon Tax in Indonesia

This research discusses administrative challenges and market strategies in implementing a carbon tax in Indonesia. The carbon tax was introduced through the 2021 Harmonization of Tax Regulations Law to control CO2 emissions from fossil fuels such as coal, oil and natural gas. Key challenges include administrative complexity, strong inter-agency coordination, effective monitoring systems, and consistent law enforcement. The global carbon market in 2023 shows great potential for economically efficient emissions reductions, but implementing this model requires adapting to Indonesia's socio-economic landscape. The research method used is a qualitative approach with case studies, combining data from policy documents, interviews with tax experts, and local carbon market analysis. The research results show that the implementation of a carbon tax is faced with several major challenges, including a lack of accurate data on emissions, an immature monitoring system, and resistance from certain industrial sectors. Effective market management strategies, such as the allocation of tax revenues to sustainable projects, are key to mitigating negative economic impacts and encouraging investment in green technologies. This research makes a significant contribution to the understanding of the complexity of carbon tax implementation in developing countries and its relevance in the global context for achieving climate change goals.

Do Indonesia Tax Rules Support Or Hinder Sme’s Tax Conformity?

This study aims to determine the effect of tax knowledge, tax awareness, and tax sanctions on tax compliance in the SME sector in Cirebon City, Indonesia. The population of this study was 2,426 SMEs in Cirebon City, and a sample of 343 was used for analysis, with purposive random sampling employed. This study employs a quantitative approach with SPSS. For testing the analyses employed, this study utilizes a quantitative approach. The findings indicate that tax compliance is significantly influenced by tax knowledge, tax awareness, and tax enforcement among SME actors.

Sugar‐Sweetened Beverages Taxation Plan in Indonesia: Call for Political Commitment

ABSTRACTIndonesia is grappling with a rise in obesity and diabetes, partially driven by a high consumption of sugar‐sweetened beverages. The prevalence of obesity among adults more than doubled from 2007 to 2018, and diabetes rates have also increased. In response, the Indonesian government has proposed an excise tax on sugar‐sweetened beverages to reduce consumption. However, the implementation of this policy has repeatedly been delayed, with the latest postponement to 2024. Sugar‐sweetened beverages contribute significantly to chronic diseases, increasing the healthcare burden and reducing economic productivity. Taxation, a widely used public health strategy in the form of fiscal measures, can decrease consumption by raising prices, raising public awareness, encouraging product reformulation, and generating revenue. Despite its potential benefits, the proposed tax in Indonesia faces substantial political and commercial challenges. The president‐elect Prabowo Subanto has not explicitly supported the tax in his political manifesto, raising concerns about further delays due to industry lobbying. Successful implementation of the tax requires robust political will, public and civil society pressure, and effective cross‐sector cooperation. The government must ensure clear policy goals, equal application to domestic and foreign products, and supportive measures such as providing free drinking water alternatives. Transparent stakeholder consultations can build broad‐based support, whereas effective monitoring and evaluation frameworks are essential for compliance. To gain public support, allocating tax revenues to public health and social programs is crucial. Although initial resistance is expected, strong enforcement mechanisms can ensure adherence. With determined political commitment and public advocacy, the sugar‐sweetened beverage tax can significantly reduce obesity and diabetes rates, improving public health outcomes and economic productivity in Indonesia. This commentary provides an overview of the proposed tax, explores its challenges, and offers recommendations for successful implementation.

Evaluation of tax debt management for bankrupt taxpayers in Indonesia

Purpose: This study aims to evaluate tax debt management for taxpayers who are bankrupt in Indonesia, based on successful tax debt management. Method: This study is a literature review that compiles and synthesizes data from Indonesian Tax Collection Law with Distress Warrant Law, General Tax Provisions and Procedures Law, Bankruptcy and Postponement of Debt Payment Obligations Law, Minister of Finance Regulation. This study also integrates previous research to evaluate tax debt management for bankrupt taxpayers in Indonesia, based on successful tax debt management. Results: Persuasive communication with bankrupt taxpayers is deemed nonessential in the context of tax debt management within bankruptcy proceedings. Standardized procedures were in place within the Directorate General of Taxes prior to resorting to law enforcement measures for debt collection from bankrupt taxpayers. These measures encompass a spectrum of enforcement tactics, including asset confiscation, imposition of travel restrictions (exit bans), and detainment in extreme circumstances. The Directorate General of Taxes assesses various criteria to determine the viability of collecting debt from bankrupt taxpayers, considering factors such as economic feasibility and practicality. Limitations: This study did not conduct a comparative analysis of tax debt management for bankrupt taxpayers in Indonesia and similar practices in other countries. Such a comparison would elucidate how different jurisdictions address tax debt management for bankrupt taxpayers, and could offer valuable insights for overcoming collection challenges specific to Indonesia. By examining common practices in other countries, this study provides recommendations tailored to the Indonesian context to improve the effectiveness of tax debt collection from bankrupt taxpayers. Contribution: This study enriches the literature on how the Directorate General of Taxes manages bankrupt taxpayers to pay their debts.

Overview Indonesia Tax Ratio in According to Political Agenda and Comparison with Another Country

This research was conducted to find out strategies for increasing the tax ratio in Indonesia. The background to this research is that Indonesia has the largest GDP (Gross Domestic Product) in the ASEAN countries, but based on data from the tax ratio of OECD countries, in 2020 tax ratio in Indonesia has decreased from the previous year. The tax ratio in Indonesia in 2019 was 11.59%, while in 2020 it was 10.07%. One of the causes of this is that not all elements of state revenue are included as tax revenue, such as regional taxes.The tax ratio trend in the two governments of the SBY and Jokowi eras tends to decline. The tax ratio achieved in the SBY era was recorded at 13%, while in the Jokowi era it only reached 10.39%. What about the tax ratio agenda in the latest political era in Indonesia and other countries