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Job Creation Law to Support Tax Reform

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By: Alfisyah Kumalasari) *
The Job Creation Law does not only regulate the labor sector, but also taxation. There are various facilities provided to each Indonesian citizen who is a taxpayer. Tax reform makes their burden lightened, because the government understands that all the troubles are due to the pandemic.
Entrepreneurs, employees, and people with other professions are obliged to pay taxes to the state. But unfortunately, many have difficulty paying taxes, because their income has decreased. Even though paying taxes is a must for every Indonesian citizen. So what is the solution?
The Job Creation Law is a solution by regulating taxation reform. There is a relaxation of income tax reduction, from 25% to 22%. Especially for 2020 and 2021. Meanwhile, in 2022, the tax will be reduced again to 20%. This reduction will ease taxpayers, so they can keep paying it, because the nominal is reduced.
The tax reduction was made gradually. Even though there is a decrease, taxpayers still have to pay it. Why is there a reduction in income tax, not a write-off? Because if it’s completely wiped out, the country will be miserable. Because they don’t get taxes from the public. Hope they understand that in this difficult pandemic, you still have to pay taxes.
Apart from lowering income tax, there is also an extra 3% discount, especially for companies that are listed on the Indonesia Stock Exchange. Don’t look at the nominal discount, but look at the government’s efforts to ease the community. Because both the lower and upper classes, all have been affected by the pandemic. Including the company owner.
Finance Minister Sri Mulyani revealed that if there are people who invest their money in the stock market, the tax on dividends is abolished. With the record, he has the status of an individual taxpayer or domestic goods taxpayer. He must also invest at least 30% in the country.
The dividend tax exemption offer will attract stock investors with Indonesian citizenship status to invest in Indonesia. That way, he helped save companies in Indonesia. Because they are shareholders, so that the company can continue. Because it gets support from the shareholders.
These tax reforms have been brilliant. Because there will be more dividends, because it is free from income tax. The difference can be added to the capital market again, and will enliven the investment world in Indonesia. So that the country will be safe from the status of bankruptcy, because the people willingly buy shares in original Indonesian companies.
Apart from income tax relief, there are other rules in the Job Creation Law that regulate tax issues. First, foreigners living in Indonesia for more than 183 days will be subject to domestic tax. So he has to take care of the NPWP, annual SPT, and be taxed. So even though they are not Indonesian citizens and stay for a long time in Indonesia, then they are free to walk without paying taxes.
Foreigners who stay more than 183 days in Indonesia, and have certain skills, will be subject to income tax. This rule was made so that the tax income to the government is greater, so that it can be channeled to other things. For example, funds for handling pandemic effects, etc.
Tax reform in Indonesia is urgently needed in order to ease the burden on Indonesian citizens who become taxpayers. Those who hold shares will receive a higher nominal dividend, because the tax is written off. So that it will be even more eager to invest in Indonesia.
If there is tax reform, Indonesian citizens will be willing to pay taxes, because the nominal value is lowered by the government. Those who are in trouble because of the effects of the covid-19 pandemic, will remain orderly and pay income and other taxes. Because wise Indonesian citizens obey taxes, and comply with existing regulations in Indonesia.

) * The author is a contributor to the Cikini Press Circle and Students

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