ANALYSIS ON TAXATION ASPECTS IN PUBLIC SERVICE AGENCIES

Abstract

As far as early November 2012, there were 143 Public Service Agencies in various types of service, i.e. health (hospitals), education (universities), research and examination institutions, fund managements, and finance managements (roll over funds for micro-small-medium business, loans, and housing savings). That number would increase in line with the Government's support for the establishment of Public Service Agencies as an effort to advance services to the society. The Public Service Agency would earn its income and spend its funds either for the purposes of investment need or routine finance. Public Service Agencies was not a profit oriented organization but it run its activities flexibly in accordance with efficiency and productivity by implementing a healthy business practice. In line with the valid rules of taxation in Indonesia, over every matters (in the form of goods, services, activities, events) may be subject of tax. Thus, Public Service Agency could be subjected of tax based on the activities that it does. There are several types of taxes, i.e. the income tax, value added tax, sales tax on luxury goods, land and building tax, and others. This article discussed the various aspects of taxation that exist in the public service Agencies. In fact, not all public service institutions have the same service types. That’s why not all aspects of taxation were found in every public service institutions. As a public service institution, which claimed to be efficient and productive, it should have owned good and integrated systems. It would have an impact on the amount of the tax increase and its tax administration could be integrated.