Tax Planning for Telecommunication Equipment Retail Trade Entrepreneurs

Taxes are the main source of government revenue used to finance household expenses and needs. One of the taxes levied in Indonesia is Income Tax (PPh) for both individuals and entities. Indonesia uses a self-assessment system in tax collection, namely a tax collection system that authorizes taxpayers to determine the amount of tax owed. In this system, taxpayers are entrusted with calculating, paying, and self-stating the taxes owed. The trust given by the government allows taxpayers to implement strategies in managing business operations so that the amount spent on tax costs can be minimized through a method called tax planning or Tax Planning. Income tax is the main contributor to state revenue so that every year the Indonesian government has its strategy to further increase state revenue from the tax sector. This is a manifestation of the realization of the budget function, namely "putting as much money as possible into the state treasury" (Erly, 2016: 12). One of the most recent strategies is the issuance of Government Regulation Number 23 of 2018, which replaces Government Regulation Number 46 of 2013. Each regulation has its advantages and disadvantages, for PP No. The calculation rate for the tax payable is indeed small, namely 0.5% multiplied by turnover, but if you have a loss it cannot be compensated, then if you have a tax credit, it cannot be credited. In contrast to the general income tax rate, the tax rate is higher, namely 12.5% multiplied by profit, but if there is a loss, it can be compensated, and if it has a tax credit, it can also be credited. The ultimate goal to be achieved from tax planning is to minimize the tax burden that can be achieved but not only do careful planning, but also by going through several stages such as organizing, implementing, and controlling well and under control. Tax management has a very broad function, which involves planning, organizing, implementing, and supervising, therefore in this journal we only focus on the discussion of Tax Planning. As for the tax subject, we choose the tax subject of entrepreneurs who are engaged in the retail trade of telecommunications equipment. Through the discussion we have chosen, it is hoped that the reader can clearly understand the importance of tax planning in running a business, either by individuals or by business entities in the form of a limited liability company or CV.