Tax Planning

Definition of Tax Management and Tax Planning

In general, tax planning refers to manipulate business processes and transactions tax debt of the taxpayer in order to be in a minimal amount, but still within the framework of tax regulations. However, tax planning can also be interpreted as the fulfillment of tax obligations planning is complete, correct and timely manner so that it can optimally avoid waste of resources.

Tax planning is the first step in tax management. Management of the tax itself is a means to fulfill tax obligations properly, but the amount of tax paid can be minimized to obtain the expected profit and liquidity. The next step is the implementation of a tax obligation (tax implementation) and control of tax (tax control). In the planning stage of this tax, do the collection and research on the tax regulations. The goal is to have the kind of action the tax savings will be made. In general, the emphasis of tax planning is to minimize tax liabilities.


Economical, Efficient and Effective Taxation Management

In order to minimize tax liability, can be done in various ways, whether they comply with the provisions of taxation (lawful) or who violate tax laws (unlawful), such as tax avoidance and tax evasion.

Tax planning is generally always begins with convincing whether a transaction or event has an impact of taxation. If the event has a tax impact, whether the impact can be sought to be exempted or reduced tax amount. Further, if the tax payments can be delayed.

Basically, tax planning must meet the following requirements:
– does not violate the tax laws
– the business is unacceptable, and
– supporting evidence is adequate


Aspects of Tax Planning
– Liabilities register to obtain a Taxpayer Identification Number (TIN)
and the number of VAT collector (NPPKP);
– Organizing bookkeeping or recording
– Cut and / or collect taxes
– Paying taxes
– Delivering the Notice


Material aspects

Tax calculation basis is subject to tax. In order to optimize the allocation of resources, management will plan tax payments are no more and no less. Therefore, the object of taxation should be reported correctly and comprehensively.


Tax Planning Stages
a.   Analyze existing information (analyzing the existing data base)
b.   Create one or more models possible amount of tax (designing one
–    or more possible tax plans)
c.   Evaluating the implementation of tax planning (Evaluating
    a tax plan)
d.   Looking back weakness and improve tax plan (debugging the
    tax plans)
e.   Updating tax plan (updating the tax plan)


General Tax Planning Strategies

a.     tax Saving

Tax saving is the efficiency of tax burden through the selection of alternative taxation at a lower rate. For example, the company can make changes to the provision of benefits in kind to employees be in the form of money.

b.    tax Avoidance

Tax avoidance is the efficiency of tax burden by avoiding tax through transactions which are not subject to tax. For example, companies are still experiencing losses, need to change employee benefits in the form of money into administration because natura natura is not an object of Income Tax Article 21.

c.    Avoiding Violations of Tax Regulation

By mastering all applicable tax laws, the company can avoid any tax penalty in the form of:
– Administrative sanctions: penalties, interest, or hike;
– Criminal sanctions: criminal or confinement.

d.    Delaying Payment of Tax Liability

Defer payment of tax obligations without violating applicable regulations can be done through the delay the payment of VAT. This delay is done by delaying the issuance of tax invoices output until the time limit allowed, in particular for credit sales. In this case, the seller may issue a tax invoice at the end of the month following the month of delivery of the goods.

e.    Optimizing the Tax Credit Allowable

Taxpayers often have insufficient information regarding payment creditable tax which is a tax paid upfront. For example, article 22 on the import, article 23 on income or rental services etc.

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