Tax Planning: As an Income Tax Saving Strategy With Cost Optimization

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VII, July 2021 | ISSN 2454–6186

Tax Planning: As an Income Tax Saving Strategy With Cost Optimization

Soffia Pudji Estiasih¹, Rahaju Saraswati²
WR Supratman University

Abstract: The purpose of this study is to determine the description of tax planning on income taxes that must be paid by the company. Income is one of the most popular tax objects where taxpayers tend to carry out strategies or plans for income tax. Taxes are one of the main sources of state revenue, which has a large and significant contribution to contribute to state revenue. For tax companies it is considered an expense, so that certain efforts or strategies need to be made to reduce it. The strategy that is carried out is part of tax planning, often the strategy used in this tax planning is to take advantage of the gaps contained in the taxation law.
This research was conducted by researching based on literature or library materials. This research was conducted using a conceptual approach and a statutory approach. The conceptual and regulatory approaches are carried out by examining concepts and regulations related to tax planning, income tax savings strategies and cost optimization. Sources of data used are secondary data and data collection procedures using documentation.
The results of this study indicate that tax planning is the process of organizing the taxpayer / taxpayer group’s business in such a way that the tax debt is in the most minimal position, as long as this is made possible both by the provisions of taxation legislation and commercially. Cost optimization can be carried out in tax planning by changing costs with fiscal corrections to costs that can be deducted from taxable income, so that this tax planning does not contradict the law.

Keywords: Tax planning, savings strategy, income tax, cost optimization

Preliminary

Taxes are the transfer of resources from the private sector to the public sector, this transfer of resources will affect the purchasing power of the private sector. One form of public participation in carrying out economic activities, corporate taxpayers have an obligation to pay taxes. One of the tax functions is the source of State finance , which is equal to the source of State revenue which is used to finance all routine expenditures and development of the State.
Taxes are one of the main sources of state revenue, which has a large and significant contribution to contribute to state revenue. This can be seen from the outlook for the State Budget for 2019 amounting to Rp. 2,030.8 trillion, consisting of Rp. 2,029.4 trillion domestic income and Rp. 1.3 trillion. Domestic revenue was dominated by tax revenue which reached Rp. 1,643.1 trillion and the rest came from non-tax revenue reaching Rp. 386.3 trillion. With this data, tax revenue throughout 2019 only reached 80.91% of total state revenue (www.kemenkeu.go.id).

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