Justice in Income Tax Collection on Sale-Purchase

Abstract

The regulation of income tax on the purchase of land and buildings in Indonesia is governed by Law Number 36 of 2008 concerning Income Tax. This law specifies that one of the tax objects includes profits derived from the sale and purchase of land and buildings. This research highlights that income tax should be based on profits rather than the gross transaction values. Employing a normative juridical method, the study underscores the critical role of "profits" in calculating income tax within the context of land and building transactions. Currently, income tax is assessed on the gross amount of the transfer value, rather than on actual profits, resulting in a violation of the Income Tax Law and imposing an undue burden on taxpayers. This practice undermines the sense of justice in tax collection and creates disharmony between the law and its implementation.

Keywords

• income tax
• land and buildings sale-purchase
• object of income tax