The Director General of Taxes has issued the latest tax-education-related policies. The policies are outlined in the Director General of Taxes Regulation No. PER-12/PJ/2021 concerning Tax Education (PER-12/2021). This regulation has been issued to provide guidelines to the public regarding the exercise of tax rights and obligations. This regulation has come into force as of 17 June 2021.
The implementation of tax education includes three scopes. First, the objectives, themes, goals, and tax education materials. Pursuant to Article 3 of PER-12/2021, tax education aims at increasing tax awareness through tax knowledge and promoting tax knowledge and skills. It is also intended is to improve tax compliance through changes in the taxpayers’ behaviour, enabling them to be more cognizant, aware, and concerned in exercising their tax rights and fulfilling their tax obligations.
Based on these objectives, tax education activities consist of three main themes, namely increasing tax awareness through tax knowledge, promoting tax knowledge and skills, and establishing tax compliance through behavioural changes. Tax education outside of the three main themes will be prioritized on educational activities in support of the national tax program.
As it stands, tax awareness constitutes a form of citizens’ moral attitude to contribute to the state through taxes to support development and efforts to comply with all existing tax statutory provisions. Next, tax knowledge covers tax law and tax regulations in a tax law system as well as knowledge beyond taxation which is strongly correlated with the implementation of tax administration.
Tax skills refer to technical knowledge in carrying out tax administration. Behavioural changes, on the other hand, refer to changes in individual responses or reactions to stimulation from the environment provided through tax education, thus, increasing tax compliance.
Further, tax education is targeted at prospective taxpayers, new taxpayers, and registered taxpayers. Tax education materials constitute educational materials that are delivered to taxpayers and accessible through the Directorate General of Taxes (DGT) website and/or other media managed by the DGT. Tax education materials may be delivered in audio, visual, and audiovisual forms. The contents of tax education materials cover the following three things:
operational technical materials regarding tax statutory provisions and the implementation guidelines;
tax policy materials regarding policy philosophy or tax statutory provisions, policies subject to affirmation, and/or further affirmation; and
other materials other than operational technical materials and tax policy materials.
Second, the management and methods of tax. Tax education is managed in several stages. The first step is planning. In the planning stage, objectives are determined and the needs for tax education activities are analyzed.
After planning, organizing is carried out by determining the place, time, human resources, materials, and supporting facilities as outlined in a working paper. The next stage is implementation. Implementation constitutes the realization stage of the planning and/or organizing stages of tax education.
If the planning and/or organizing stages have been realized, the monitoring process may commence. Monitoring refers to the stage of supervision carried out at each stage of the management of tax education. Next, tax education activities are subject to an evaluation or assessment. At the last stage, the stages of planning, organizing, implementing, monitoring, and evaluating tax education activities are to be reported.
With respect to tax education methods, the regular and systematic ways of working used to facilitate the implementation of educational activities are to be taken into account to comply with the set objectives. Tax education methods consist of direct active and passive dissemination. Active dissemination is actively conducted offline and online and has clearly identified educational goals. Passive dissemination is passively conducted offline or online by tax dissemination officers.
Tax education methods may also cover indirect one-way and two-way dissemination. One-way and two-way indirect dissemination is carried out through audio and/or visuals delivered on social media channels and/or other media. In one-way indirect dissemination, there is no direct interaction, whereas, in two-way indirect dissemination, there is direct interaction.
Moreover, there is a tax education method covering direct dissemination through the contact center and the completion of tax administration. This type of method is carried out by tax dissemination officers assigned to the contact center. Next, there is also an educational method with dissemination through a third party carried out by a DGT’s external party through a cooperation program. Dissemination through third parties may include tax awareness, tax volunteers, business development services, and dissemination through other third parties.
Third, tax dissemination officers. The tax dissemination officers referred to under PER-12/2021 consist of functional tax dissemination officers and/or assistant functional tax dissemination officers. If so required, however, administration officials may appoint DGT employees to implement tax education.
Tax education may be carried out jointly by several working units in one working area or cross-working areas within the DGT and other parties outside the DGT. Joint tax education is subject to certain conditions. These certain conditions refer to tax activities constituting national priorities or other conditions stipulated by the DGT.