Topic: Rules of Taxes (Read 519 times)

The most effective in terms of collection are indirect taxes.  

One of the most popular indirect taxes is VAT.  The final payer of VAT is an individual, an ordinary citizen, who purchases goods, works and services and pays this tax as part of the price.  

The seller of goods, works or services (organization or individual entrepreneur) pays this tax to the budget (acting as a tax agent).  It is much easier to exercise tax control in relation to organizations and individual entrepreneurs than in relation to citizens - individuals.  

Therefore, VAT and other indirect taxes (sales tax, excise tax, etc.) have a very high level of collection.

Indeed, sometimes the tax regulations are complicated and sometimes they seem unbalanced. In general, taxes are designed progressively, meaning those who earn more pay a higher percentage of taxes. In the case of the farmer you mentioned, if they made $2,000 in the crop, they probably wouldn't have to pay taxes if they weren't registered or didn't report their income. Again, if their income exceeds a certain threshold, they may be required to pay taxes.

I think the purpose of taxation is to provide revenue for the government to fund public goods and services, and to ensure that everyone pays their fair share based on their ability to pay.

It is not much to worry about if someone does not pay their own taxes, as that is the rule that can be used for every country that is still in the tax code. 
For example in some countries like India and in some places the penalty may be a lot higher. Some countries will pay the tax in the following way, like for example, if you are planning to buy a coffee on the island of Maldives (2 years ago people are buying coffee, now they are buying coffee) if you know how to live without that, then there is no point in paying

It makes sense that you are unclear about the tax laws in your nation and the various restrictions for various forms of income. It certainly seem unjust that some individuals with high incomes are exempt from taxation while those with low incomes must pay taxes.

It's crucial to keep in mind that taxes are required to pay for crucial public services like healthcare, education, and infrastructure. These services wouldn't be accessible to everyone without taxes, and the burden would fall disproportionately on the less fortunate.

It's also important to remember that tax avoidance is prohibited and has dire repercussions. While some people might be able to avoid paying taxes for a while, they might end up getting caught.

Everyone needs to pay their fair share of taxes, according to their income and other relevant circumstances, in general. You may wish to speak with a tax expert or government representative if you have issues or questions concerning particular tax laws in your nation. They may offer you more information and direction.

I believe this the income tax. Well, not everyone who earn pays taxes here in my country. Income tax are only into effect if you're earning more than $4,500 per year. Though this has not been accurate for most, especially for those who are in freelancing industry, but this has been a big help for minimum wage earners. The only thing that's killing these people are the VAT and rapid inflations.

I don't want to dispute you, because I know very well that government accumulate revenue, and from my understanding the revenue of government comes through tax, so saying that government accumulate revenue I don't think that am mistaken over it, I believe that, because in my country some regions revenue is higher than other parts revenue, I still quote that government that government of 1978 and government of the year of 1980 was having her citizens at foresight,  but the present government doesn't have the interest of her people, because their motive is only to enrich itself and cabinet's, this present set of governance, they only promise during the time of election but they will not accomplish their duties as they promise immediately they are elected in office, politicians are a fruit called bitter cola, the sounds of bitter cola is different from the taste, so let us not to believe forty percent of what people says concerning government promise
 

In reality, everyone pays tax. That is why we have direct and indirect tax. Even if you don't work, you will still be taxed when you buy groceries.
Even if you are a student, you will still be taxed through your school fees.
And then the best method of taxation that ought to be adopted world wide is Pay As You Earn (PAYE). With this method of payment, everyone would be able to pay and before civil servants will recieve their salary, tax must have been deducted with a standard implemented method of taxation.

Taxation in my country majorly for those big company's, those company pays their tax directly to government at the every end of the month and also yearly depending on how the arrangement was carried out. For we the little workers there are no much tax but only assigned to our banks, meaning whatever amount you being credited off there are little percentages that goes to the government depending on the amount that gets credited to your accounts. For a current account holder their tax aren't the same with those with a savings account. For more details about taxation you may visit here

Terrible analogy
- bees don't collect honey, they collect nectar and flowers have no need for it, they offer it free exactly to have the bee transport polen
- bees work all day, they don't have Sundays they don't have holidays, they don't get retirement
- male bees don't work at all, they benefit from the food and one of the lucky bastards has a fun time once in his short life
- queen bees are the only ones to get the royal jelly all their lifetime
- all dead bees are just thrown away out of the hive and forgotten

So, it doesn't get more despotic than that at all, and I'm sure every bee would love to pay taxes in the humaninstead of working in a hive.


Governments can't "accumulate" revenue, and it's really bad even for the worst of them if they would try this.
It means they will get fewer votes and then they would get thrown out of power and they would have no way to actually spend the amazed revenues, which is really really stupid. What bad governments do, which btw are still made out of people is spend less money on what's important for the people and more on things from which they can have a share of the money in bribes or profits, but no bad government would ever try to "accumulate" stuff.

Taxation should not be a painful process for the people. There should be leniency and caution while deciding the tax structure. Ideally, governments should collect taxes like honeybee, which sucks just the right amount of honey from flower so that both can survive. Taxes should be collected in small and not in large proportions.

Taxes are the most important government revenue for carrying out governance operations and implementing policies in education, health and other public service infrastructure. Yes, without taxation it will be very difficult to achieve people's welfare. So without pressure from the government to pay taxes it will be very difficult for the state to get funding in carrying out its plans for development in the country.
but for this it is quite difficult to do in a country which has a complicated bureaucracy in carrying out accountability for taxation so that a lot of fraud is being carried out, the government must also have a tax supervisory agency to serve as an observer so that it runs fairly and there is no fraud, a few months ago in my country also found that policy owners at tax officials found a lot of fraud and tax funds that were obtained did not fully enter the state's pockets.
The emphasis on paying taxes must be fair and of course the transparency of the flow of tax funds is common knowledge for the public.

While it is true that some governments prioritize revenue collection over the welfare of their citizens as you demonstrated in African countries, it is important to recognize that taxes are a fundamental source of funding for public goods and services. Without taxes, the government would not be able to finance infrastructure projects, education, health and other essential services that benefit society as a whole.

In addition, tax compliance is necessary to maintain the integrity of the tax system and ensure that everyone pays their fair share. While there may be room for improvement in the tax reporting process and public awareness of tax regulations, it is ultimately the government and taxpayers who are responsible for working together towards a fair and efficient tax system.

Government is not after of what that will bring good for people, what Government is to accumulate their revenue,  that is while sometime they don't like do things that will profit the masses, in some African countries theirs no tax but the government  is surviving with good responsibilities, so it depends government who can not protect the interests of her people.

Most countries are sure to use taxes to finance the needs to drive the country's economy. because with taxes the state can move the wheels of the economy.
although there may be those who have income from other sectors, the tax sector will still be a top priority.
I do not deny that in developing countries the tax sector is the main source of income, but what is returned for the welfare of the people is inversely proportional to not fulfilling the welfare of the people.

Taxes are indeed an important factor for the state to finance the life of the country, in developed countries taxes are mandatory because they also provide maximum service so that benefits are evenly distributed, while in developing countries including my country taxes are only a few benefits felt, and according to reports that many tax officials who steal tax money.

Farmers still need to pay taxes, since that land is also an income generator land, they will impose bigger taxes by estimating how much they can farm and earn on that land along with their land tax. Based on my own understanding of things, they will pay in accordance with the same concept as how business establishment are being taxed. In my country it is hard to launder money if you are not connected to some big time firms or you don't have any backers since even if you earn something from your freelance, all the banks and even the service providers (custodial wallets) requires you to verify and will ask you where that money came from and they will set limits into your account depending on what information you will provide them during verification. So if it happens that your incoming transaction exceeds the limits of your account, you will be asked certain questions or most commonly you will be limited in withdrawing will wait for a couple of weeks or months to reset your withdrawal limits.

It seems that what you said will be difficult for countries that do not have natural wealth such as oil and gas to fulfill, if they do not seek income from the tax side. You are right that the rules will be the same for all citizens, be it those who pay taxes or those who actually benefit from taxes, there should be no discrimination for every citizen.

Many countries rely on taxes for a source of income, in my opinion this is unfair because those who pay high taxes get the usual same treatment from those who do not pay taxes, I hope that the country can maximize natural resources to become a source of income.

In your final paragraph you seem to get a bit confused. The farmer in that example doesn't have to "register" for anything, he is either a lawful tax payer who has an income and know that a portion will have to be paid to the tax authorities or he is a tax evader. A tax evader is not an admirable stance to take, because he is effectively stealing from everyone else in the country. All these taxes should be paying for the maintenance and upkeep of different areas of government, services or facilities. If he is choosing not to pay his fair share, then they are breaking the law and in the long run will always be looking over their shoulder because in many cases they get jail time or very punitive fines.

You forgot the biggest source of tax for the government which is the goods and services tax which is levied whenever you buy anything. If you see on an yearly basis, this will be the tax you'll be paying the most. Apart from this don't forget about the toll tax that we pay when using major highways and I am still not putting up the taxes paid on agreements made like the stamp duty and other fees. Also as you are saying tax rules are confusing businesses always have advantages when compared to salaried people in taxes.

I think the government should also take steps to improve taxpayer compliance, such as increasing public awareness of tax regulations and simplifying the tax reporting process. This can help reduce tax evasion and increase revenue for the government, which can then be used to benefit the rest of society.

With this you could see the reason that it may be uneven and although that depends on government. Some government don't have better data of their citizens and because of that, it can't trace those who are suppose to remit tax money to government. So because they don't have such data, they are not strictly practicing tax compliance therefore some people exempt themselves. For example with what you mentioned, a farmer who does not have his or her data, farm registered with government, the government will find it difficult to locate and that is part of the reason. This is mostly the situation in third world countries. Those who pay taxes are those that are employed with the government because it is removed from source as income tax.

I understand what you mean and this usually happens in developing countries where things are not very well documented.
Either way, that farmer is commiting a crime by not paying his taxes. It's all boils down to a system. A country without a system won't know the population of its citizens that should pay taxes. In countries like this they usually have very high VAT because the government want to use other means to get what they are not getting from income taxes.

Now let's take the farmer for example, the government is actually not doing anything for his (from his point of view). He provides his own electricity, water, security and every other thing he needs to run his farm that they government should provides, so tell me, what wouldn motivate such a person to pay his taxes to the same government?

High or Low income, everyone get's annoyed with it because you are being charged regularly. It's like an added expense to the ones that we already have but indeed that your country is more brutal because even the low income earners are still being asked with it but maybe their tax rates are much smaller than those who earn huge? It's not effective if people don't follow it but if it's mandatory, do you think you can avoid it? And even if you do, you will still be punished badly once you get caught.

Some of those who lived in your country or those who work privately are still lucky because you said they are not being taxed. This is not the case that is happening in other countries. There are even some who are being taxed even if they are only dealing with cryptos can you imagine that?

When the state creates a tax system, it faces certain difficulties.  People try to avoid having to pay taxes and fees. 

Therefore, the government follows the path of least resistance.  Legislators impose those taxes that are the easiest to collect. 

The easiest way to collect indirect taxes.  These are the taxes that are automatically paid when purchasing goods (works and services).  These taxes include VAT, excise taxes and sales tax. 

It is also very easy to collect taxes for which the obligation to withhold them from the taxpayer is assigned to the tax agent (for example, the employer).  It is to this group of taxes that the personal income tax belongs. 

Direct taxes (profit tax, property tax, etc.) are very difficult to levy.  Taxpayers try their best to avoid paying these taxes.

I agree with the opinion that income tax is only suitable for government employees, income tax is indeed something that is disliked because the government is not involved with someone's income, of course this is my opinion because I also have to pay income tax and it is automatically deducted every month. It's time for the government to think about collecting income tax.

This is the first time I heard of this kind of tax regulation. I believe it would be more efficient if territories would consider the ability to pay of the tax payers wherein those who earn more should pay more. That's why there is progressive tax rate where rate increases variably with income. With regards to the use of facilities from the state, it is not limited to buildings or infrastructure, I think everyone benefits with the where the taxes used, if used properly, so it is right that everyone should contribute through paying appropriate tax.   

Tax regulations throughout the world are certainly different and in my country income tax is annoying, those who do not have large income but work are obliged to report wealth, in my opinion this is not effective and wasted time, income tax is indeed easy to apply for them Those who have large income or government employees, while private workers certainly do not need to report because they do not get facilities from the state.

Tax regulations can indeed seem complicated and sometimes unbalanced. Tax regulations can vary widely depending on the country and the specific circumstances of an individual or business. In many cases, small businesses and individuals with lower incomes may qualify for special tax breaks or exemptions, while those with greater incomes may be subject to higher tax rates and this may be relevant to what you are stating.

I think the goal of tax laws is to ensure that everyone makes a fair contribution to society, while also providing support to those who need it most. While the system may not always appear fair or equitable, it is important to remember that taxes play a critical role in funding important social programs and services that benefit all of us.

Any way to reduce tax legally tends to be like breaking the law. Therefore, someone said a very good opinion: "You need to pay taxes, but at the same time do not feel like an idiot" (C)
For example, in Russia, if I want to officially pay an employee $1,000, then I have to pay him $1,140. I have to take 140 dollars as income tax (13%) and I also have to pay +36% of 1140 dollars of various social taxes. In total, an employer pays $550 in taxes for $1,000 of an official salary, which is why there are a lot of shadow wages in Russia. 200 officially, the rest is not declared.

Yes, that's quite strange, but it seems that every economic act in a profession has its own criteria so that it is considered not fulfilling the requirements to pay taxes.
It is a natural thing that taxation does not detect because maybe the name and status of the person who manages the big money is not on the tax list, just like in the past in my country when there was no taxation on crypto trading and as we know the exchange and its traders have a sizable circulation of money in the crypto market but not paying taxes. It could be like that.
Yes, be aware in the first case, because the person who borrowed the large amount of money did not carry out financial procedures such as paying taxes, because he did not know about it while the regulations seemed to already exist so he had to pay taxes.

I think generally if you don't report your income then you are breaking the law. That is "tax evasion. Tax evasion is when you do not report all or some of your income. I don't know how it works in your country but people who do not report their income are committing an illegal act and can be prosecuted. There are ways to reduce your tax legally and that is tax avoidance.

That's the difference, in my country there are still many unemployed whether they graduate from school, university, or even don't graduate at all. Factories are also still limited in terms of hiring employees and the minimum salary for employees is also said to be still low when you see the prices of basic necessities and fuel which are now expensive. So, it can be said that the tax issue has not effectively reached all levels of society, only certain, as I said earlier, such as employees of government agencies, large entrepreneurs who have registered their businesses.

When talking about farmers or freelancers, in reality they are not prosecuted at all even though their income can be said to be high too. Maybe if the work system with a minimum wage for employees is evenly distributed in all regions and in all factories (because sometimes it is different for each factory or region), and the unemployment rate can also be suppressed properly then tax rules for all levels of society including farmers and freelancers, I'm sure they don't mind because this country is already an industrialized country.

Have tax officers never reported in 1 year tax income in your country? Then where is the tax budget used? If it's not transparent and you see the tax official and his family living in luxury whereas if you see in the law that the salary of a tax official is......... It means the same, in my country it's like that too. Even at the village government level it is no longer transparent, where the funds from taxes, from the central government are used.

It means the same in my country. If our observations regarding taxes especially agriculture and in some countries the rules are almost the same, it means that we have almost reached the most appropriate answer. Because in European Union countries as discussed earlier, farms with large fields must report their yields to the taxpayer while those with small fields are not required to report. the point is for farmers, they are not obligated beforehand, except if the yield is large then he must report to the taxpayer.

In my country have several kinds of taxes but I really understand with income tax as worker have reached above 70 million each years, that mean income with amount $500 each months have to pay taxes. I am little disagree with rule taxes in my country because not transparent and most sadness the people in taxes working and their children have financial freedom live but we are the payer of taxes most sadness.

I don't trust yet what happen in my country taxes most terrible how much income each year and there are hidden access about where taxes spent. Need evaluate about taxes rule in my country actually with worker salary have to pay taxes with higher amount based on capital income in my country.

This is an excellent observation. I never thought or believed that there are some exemption in tax paying. But when i saw this topic i went on research to find out more about farmers not paying tax. According to my findings, i realized that farmers in some countries like  India don't pay tax. And the mpt-agricultural-income-rich-farmers-india.html#:~:text=Taxes%20on%20agricultural%20income%20falls,to%20file%20income%20tax%20returns.]reason is that farmers who have no other source of income are not required to pay tax. Regardless of their income from the farm produce.

I'm saying it's partly poor implementation because there are already tax laws. There are straightforward tax laws that have become inutile because they are not properly implemented. They're just there idle. At best, they're selectively implemented, usually targeting small fishes. The big ones are left alone.

One example is the issuance of official receipts. That's a very simple and straightforward legal requirement which is not respected by many businesses here. This should have been one of the bases for the government tax agency to know whether taxes are properly paid.

Not only agriculture, but in my area there are also many farms such as laying hens, goats, ducks, there are also buffaloes, they all never get a tax bill for their business. But they get a tax bill for the "land" used for their business, where the taxpayer on this land's tax has been a definite rule from the government from the past.

Okay, I'm starting to understand this rule and have found a bright spot. from your explanation, it will depend on the area or number of crops, right? For example I plant tomatoes in the yard of the house then it will not be taxed, but if I plant 1 hectare of tomatoes, then I have to report it to the tax office, even though there was no bill before, right?

I wouldn't say it's poor implementation but I think that is only normal and you are right that others are worse because their rates for taxing are too high. They also demand high taxes on crypto transactions. You are lucky that you are not from a stricter country because people there can easily get away with their taxes but I think this isn't beneficial in the long run.

Maybe your country is still among those countries who are slow to improved. If we think we are earning enough then we must willingly pay our taxes to the government so that we will have a peace of mind and it does makes you feel good knowing that you are helping your country to recover or grow.

In my country, we pretty much have the same standard tax systems as you guys, with exception on the Sin Tax, coz here in the Philippines there's a high tariff placed over vices like drinking, and smoking, well those two only anyway. Before Sin Tax, a cigarette here costs less than a penny, you can literally buy a whole pack for a dollar and fifty. After Sin tax, prices soared and you're very lucky now if you could buy half a pack for the same aforementioned $1.50 price point. This Tax is well-meaning, as it aims to stop people from subscribing to these vices but it failed to consider the fact that once you picked up the habit, not even the price will really stop you. There's a reason why crackheads will literally sell their houses off brick by brick to get a fix.

What you explaining is related to tax slabs. Basically tax slabs are done based on the income of person or entity. Irrespective of the profession, category of work and nature of work one can get benefited from the tax system only if they don’t fit in the tax slab.

For example, in my country around 10,000 USD per year is considered as low wagering and Non Taxed slab. However, single Penny above it Will be considered as tax slab of 5%.

This percent will increase based on the amount of income one individual is having. The maximum tax slab in my country is 30%. For businesses GST is another type of tax that needs to be paid monthly or quarterly.

Yes, it is me.

Idk the exact calculation, but I think it's fair considering the type of income both of them have. Farmers are more volatility earners, their earnings figures are "likely" but not "always". Especially in certain seasons, they even earn minus.
On the implementation side, most of the farmers in our country lack administrative awareness, which means that taxation hasn't been fully effective in reaching actors in this sector. The profession of farming is involved in the older generation with low educational background.

Sir, first I read just what I want. This is more effective - and you would not believe how I can shape reallity.

And second,

if others say tax class I is different as tax class II, others say tax class I can be tax class II - with crypto solutions.

Tax is how I want tax to be. This is a great guideline.

Nobody here is talking about crypto or crypto taxation, OP wanted a simple answer on taxation on agricultural products.
Do read the message to which I replied!


Of course it's right because that's what we're talking about, taxation for a yearly activity with a determined revenue that comes falls into different categories, non-taxable, taxable under 10% here as additional revenue but still beyond a certain amount, or taxable at 25%.

I don't understand why you felt the need to bring crypto into this, might as well talk about tourism taxation or revenues from copyright as they have just as little in common with agricultural stuff as crypto.

I am sorry, your field/fruit example (for the EU) is not a good explaination, and the quote above is not right!

Agrar fruit and crypto is not the same tax asset. Most of the cryptos are categorized in the same tax asset class as precious metals. The difference is, that you consume food fast, but precious metals is a long term trading value.

So you first point from the quote is right. Under a certain amount of selling profit you does not have to pay taxes. Above you have to pay taxes - But: If you hold that kind of assets 1 year, you also have not to pay taxes for the profits. / Except stable coins and staking (other tax classes).

And if you buy crypto there is no VAT.

There is no general rule for all countries.
I see another user saying you're from Indonesia, I don't speak the language, and I can't find anything on a simple search in google about how that works there but I can tell you how it works in my country, and this is not a general rule even for all the EU.

Any kind of farming you do which only involves utilizing the final crops for personal use, without you at any point engaging in other activity, like for example selling either the strawberries or the strawberry jam, it's not a taxable event and it doesn't need to be declared to the tax revenue services. But they are limits to what is considered personal usage, so you can't plant 2000 ha of corn and say it's for your morning cereals.

If you do sell your products to a third party, thus engaging in a taxable event, you are subject to taxation which works like this:
- your revenue is under a limit (depends on each country), you won't pay taxes but you need to declare the revenue
- your event is over the limit, you're treated like any business and you have to pay your taxes.

So basically, you plant a few melons and you eat yourself in your backyard you don't need to tell anyone, you plant a few and you sell them you need to register but you won't be taxed for 5 euros profit, you plant 100ha and sell them, you're a business and you need to register not only for tax but with the agricultural office also.

Again, and I must mention this, I don't know how the law woks in Indonesia, I'm just telling you from an EU citizen (who is has been for 20 years involved in agriculture) point of view.

Yes, I really don't know whether agricultural products are included in the tax payer or not. Because of my ignorance, finally I asked here maybe I will get an answer, whether agricultural or livestock products, whether on a small or large scale, are indeed taxpayers, or not taxpayers. If not taxpayer, then it won't be a problem.

The outline of my question is whether in all countries, farmers, freelancers, or small micro-entrepreneurs who were not previously registered with the taxpayer have to report to the tax, or if they are not registered then they are not subject to the taxpayer?

This is also true in my country. But I'm sure this kind of poor implementation is not as worse in many developed countries, or perhaps even non-existent.

Where I'm from, tax laws are not that effective also. And for a number of reasons. For one, there are many ways to be dishonest with your income and you will pay only a small amount or none at all. Or you don't declare anything at all and shirk tax responsibilities altogether. Or somebody will do the trimming of taxes for you. Or you're a rich and powerful person that even government authorities won't bother you about taxes. I'm not even saying all these are illegal. After all, tax avoidance is legal.

Indeed, those who are formally employed are the ones who cannot evade because taxes are automatically deducted from their salaries.

And you must also be from Indonesia right? because you understand a little what I mean. As for the farmer's problem, so far there hasn't been any problem with the tax office and that's true. Even though their income can be said to have exceeded the minimum wage of employees. And from this difference between agency employees or government employees and farmers or freelancers, is this fair for the tax rules?

That is true, but there is no such action. The only action related to non-payment of vehicle tax is when you drive down the street and meet with the police, the vehicle will be confiscated before paying the tax and fine.


Yes, some of my friends who work in factories also get a small deduction from their salary for taxes, so they don't have to deal with taxes. What bothers me is if a person is not associated with a particular institution or industry, in the sense that he stands alone as I said before he is a farmer, even though he has a large income from crops and is not recorded in the taxpayer, does he have to make his own report or still not paying taxes because he never got the bill?

That's true, like seller in a sideway or micro small businesses, they don't have tax reports to the authorities. But they have to pay to the person in authority in the area (not official from tax office) if i may say so.

So, I once met a person at the tax office, he was a rice miller. He had never been to the tax office before and indeed he often borrowed money from the bank if his capital was insufficient. And yesterday when he was about to borrow again, it turned out that he had to pay taxes first which he don't know from the start. He said "if I have to pay this much, I better not borrow money, because I'm old and don't know about this tax".

Every single thing you purchase has taxes included, also known as VAT. Taxes are necessary to keep a country running. The issue isn't taxes themselves, but that, especially in some countries, the money obtained through them isn't going towards the benefit of the country and the community. For instance, here in Greece, we pay a relatively large amount of money for road tax, but the roads, especially in my area, are in terrible condition. If the money was put to good use, I wouldn't complain about having to pay them, but everything from roads to schools to universities to hospitals is underfunded.

Generally, debts or you borrow from some lender or bank, the money is not taxable. There are exemptions. Filing bankruptcy is not taxable as well that's why a lot are filing for bankruptcy if they think can't make it anymore.

But any business as long as the local government sees it making an income can collect tax from the business. If you hide your business, then I guess it's up to you not to pay taxes. They don't encourage people to do that but yep you can get away like the farmer, this probably depend on which country.

In my country there are 3 types of taxes including:
1. self-assessment
 namely self-regulated taxation and reporting it to the tax office in the sense that he calculates, pays and reports it himself, the tax authorities only supervise it. Usually this is done by companies or restaurants and crowded places.
2. Official Assessment System
namely the tax party that determines how much to pay, usually this tax collection is for building houses and vehicles which have been determined by the government.
3. Withholding System
namely taxes that are taken care of by a third person, usually this is for income tax which is automatically deducted when we receive a salary so we don't need to take care of it because it has been done by this third person.

For the third tax, this is usually only for people who have a fixed income, while those who work odd jobs are far from tax collection. But with the change in the system, everyone who has an identity card has been registered in the taxation sector, this applies to those who are already working or unemployed.

it is indeed unfair for the people who have little income especially since the farmers do not harvest it every day. Therefore, there should be rules on how many producers have to pay taxes so that it is not burdensome for small farmers.

Almost the same for tax laws here in my country, government employees are the most obligated people to pay taxes because the government takes the tax directly from the employees' salaries before it collects them.

This does not mean, of course, that the owner of the car, farms, or other professions do not pay taxes, but there is corruption or complacency by the tax collector, as they sometimes neglect their work, and at other times they ignore the car, land, or commercial store tax in return for giving them an amount of money.

This is what is happening in my country, I don't know, maybe the same thing is happening in your country.

It depends on the country's laws, but in most of them if you just abandon your vehicle it doesn't mean you stop getting taxed for it, it's still registered in your name it's your property, and you are going to have to pay tax until you void your registration, basically stating that the vehicle is not drivable or roadworthy anymore.


The borrower is the person who took the money, a tax payer is a normal citizen, and the borrower can't be notified by the tax payer more by the tax collecting agency in your country. Second, it doesn't matter if you borrow money or not, taxes are paid if you have any kind of event on hat revenue, and there is no such thing as not knowing about it.
You've earned $1000 from any kind of work, be it selling your crafts or doing a freelance job you must register and pay taxes, unless in your country revenues under a certain amount aren't taxable, but that doesn't matter you don't have to fill your taxation form, even if you're not going to pay a dime.


Unless your country clearly states that revenue from farming is not a taxable income for under x amount, what that farmer is doing is tax evasion, in most of your post you're mistaken tax dodging with tax exemption, thinking that if you're not paying it's just like that and it doesn't matter. The inability of your government to catch you doesn't make it legal.

As far as I know farmers cannot escape the taxes set by the local government, when talking about agricultural product policies, especially in the Asian region such as: Japan, Indonesia, Malaysia, Vietnam, Thailand, philippines, China and others, if you look at the yields, you think the farmers are tax-free, you are wrong, isn't that, the government does not collect taxes directly from the crops for the farmers.

Way Government policies take taxes from farmers' crops.
1. The government will take the VAT rate charged to farmers at the selling price directly to entrepreneurs and agents.
2. Mechanism Other taxes imposed by the government on farmers are calculated in terms of purchasing fertilizers, seeds, and all other needs.

You need to know that all forms of industrial business entities buying and selling farmers' produce do not escape government supervision, all collectors have a minimum tax value of 1% to farmers, whether it's like: rice, rubber, corn, tobacco, coconut, patchouli and so on, whether it's agricultural products from gardens, rice fields, mountains, and so on.

There is no confusion that the government implements a tax policy for the share of farmers' income, everything has been stipulated in the tax laws of each country, they know that agricultural produce is the biggest economic turnover for the government than land, vehicles etc., they will not let farmers escape taxes. there are a thousand ways the government takes taxes from agricultural products.

You're from Indonesia right? That doesn't mean they're exempt from taxes, the law provides for that with some sanctions. It's just that sanctions aren't properly implemented, especially for the general public (non-civil servants).
For those who are trying to be registered as a taxpayer, they may have administrative interests where a tax card is one of the requirements.

Farmers are free from tax obligation here in my country too. Imo, it's justified as most farmers especially in developed countries tend to be uneducated and tax paying can be hassle. However, there are always two sides and this code is being taken advantage of as it has become a conduit for tax evasion.

Maybe we have to look again at how the tax regulation is applied for several groups and the percentage they get for 1 year. So income tax will refer to annual profits, some get 5%, 15%, 25%, 30%, and 35%. for example,
in 1 year income reaches $0 - $4000, then the tax rate that you get is only 5%.

So, we only need to look at how much the profits of farmers and employees are for 1 year, even though each of them gets 5%, the amount to be paid will be different.
Farmers earn $2000/4 months x 3 (in 1 year only harvest 3x) = $6000
taxes paid = about $300/year
Meanwhile, employees earn $300/month x 12 = $3600
taxes paid = $180/year

Both are still included in the income tax range of $0 - $4000, so each is a 5% maintenance tax.

I don't know about taxes in other countries but in my country it also happens that people who have a large income but don't have a tax card do not need to report it and there is no tax to be paid, but even though they have income that is already in excess of what is not subject to tax there are many people who can act fraudulently by reporting only their minimum income so that they will still be tax-free, but because now many have been digitized, there are also many things that are difficult to hide when a citizen has assets that are considered luxurious in his name, then he is certain to be become the target of taxes, government employees, private office employees will easily become taxpayers because their income is provided through bank accounts and companies are also required to report on their employees.

Impossible, when someone want to bought a vehicle he need to give his identity and it will recorded if he has a vehicle. So after a year, the tax employee can just contact him through his phone number or come into his house.

No,  they're not entirely breaking the law if they didn't self reporting their jobs and earning to the tax department, except they're have an intention to escape from tax and create fake story. A self employed person is submitting his identity on the freelance website, so the site already collected all of his identity and how much he make for every day/month/year. I believe the site is working together with the government.

If the bank account of those self employed person receive the money which exceed from the minimum income should be taxed, of course the bank will ask him where he get the money and he should report it to the tax department.

@OP is from Indonesia based on his old post https://bitcointalksearch.org/topic/m.19176208

What you say is a bit confusing.


No. If they do not report their taxes, they are breaking the law. If it were as you say, no self-employed person would declare them.


Make this clearer because it doesn't make sense.


You don't have to swear. Maybe you should tell us where you live to see if we can clarify.

We all know that all citizens in all corners of the world must be taxpayers. Let me say about taxes in my country:
1. vehicle tax
Obliged to pay once a year, but there are also those who do not pay and the authorities also do not come to the taxpayer's house and in the end it is left abandoned
2. Land tax
Once a year the authorities will come to the taxpayer's house to collect taxes
3. Income tax
This will be my concern this time, whether all countries treat the same rules or not, I want to hear from all of you.
Income tax in my country in general will be very effective for employees of government agencies, offices and entrepreneurs. Let's say this, everyone earns whether it's from farming, freelancing, or any kind of work that isn't recorded at the tax office, if they don't report it to the tax authorities then they are exempt from tax. However, there is a provision that if someone has ever borrowed a large amount of money from a bank, even though the borrower was not notified by the taxpayer at first, in the end he was exposed to the taxpayer's accumulation of taxes over the years and he didn't know.

I mean this tax regulation seems uneven and it seems that people who have to pay taxes are people who deal with large amounts of money. Let's say a farmer in 1 harvest (3-4 month) earns $2000, he will remain tax free if not registered or he doesn't register it whereas an employee from the start is already registered with the taxpayer even though their monthly salary is $300. What do you think? I'm a little confused with this tax rule.