On 11 August 2026, the DGT responded to a common sentiment among entrepreneurs: “Why tax after I struggled alone and succeeded?” The article explains the progressive tax philosophy underpinning Indonesia’s system: those with higher ability to pay contribute more to fund public infrastructure, education, and healthcare that enable business environments. It cites the constitutional mandate (UUD 1945 Article 23A) and the HPP Law’s rate structure (5%-35% for individuals, 22% corporate). The DGT emphasizes that tax revenue financed the very roads, ports, legal system, and skilled workforce that supported entrepreneurial success.
Key Takeaways
- Public Goods Enablers: Taxes fund the ecosystem (legal certainty, infrastructure, human capital) that allows businesses to thrive.
- Progressive Rates Protect MSMEs: Lower brackets and final tax regimes shield small businesses while higher earners bear proportionate share.
- Compliance as Investment: Countries with higher tax-to-GDP ratios correlate with better infrastructure and institutional quality, per OECD data.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement