Tax is a contribution from the taxpayer to the State. According to law, the taxpayer does not receive direct rewards from state. Taxes divided by some category. Tax law is the rules governing the relationship between the government and taxpayers, are also set to anyone who becomes the object of all taxes.

Tax law collection basis:
1. Article 23A of the Indonesia 1945 Constitution "taxes and other levies that are forced to use the set with the State law
2. Act no.6/1983 General provisions and procedures of taxes
3. Law no. 7/1983 on Income tax
4. Law no. 81983 on the value added tax, goods and services and sales tax on luxury goods

Tax function is to finance public expenditures in connection with the task of conducting the state government and the welfare of the people.

o Budget Function: as much as possible incorporated into the State revenues, for the development of State
o Rule function: The private sector can participate in advancing the national economy

Tax Type:
1. Direct taxes: The tax must be paid by taxpayer, for example: income tax, payroll taxes and wages, etc.
2. Indirect taxes: Taxes that there could ultimately take the price, for example, sales tax and development tax, etc.
3. Local taxes: Taxes levied by local governments, for example: road tax, tax billboards, etc.
4. State tax: Collected by the central government for public purposes by the tax inspection, for example: tuition and fees rehabilitation area of regional development

Theory, system, principles of taxation in Indonesia
o The theory: A taxpayer must fill a SPT (tax notification letter), signature itself, restore the SPT is the tax inspection in a particular period, shall provide tax information and show evidence of tax accounting
o System: In Indonesia, the tax collection is still using self assessment system where every taxpayer in the trust to calculate their own tax debt.