Pradypto Utomo (023111217)

Question : read article 28, clarify the characteristic of bookkeeping?

Answer : According to article 28 about bookkeeping and auditing, the characteristic of bookkeeping are: 1. An individual Taxpayer who carries on business activities or independent job and a corporate Taxpayer in Indonesia is obligated to perform bookkeeping. 2. The Taxpayer who is exempted from the obligation to perform bookkeeping as referred to paragraph (1), but obliged to keep records, is the individual Taxpayer who carries on business activities or independent job that in accordance with the provisions and regulations of tax legislation as allowed to calculate net income using Deemed Net Profit (Norm if Net Income Calculation) and the individual Taxpayer who does not carry on business activities or independent job. 3. Bookkeeping or recording must be carried out with regard to good intention and express the actual condition or the business activity. 4. Bookkeeping or recording must be carried out in Indonesia using roman alphabet, Arabic numerals< Rupiah unit of currency, and arranged in Indonesia language or a foreign language which is permitted by the Minister of Finance. 5. Bookkeeping maintained using the principles of consistent and using accrual basis. 6. Changes to the methods of bookkeeping and/or the fiscal year must obtain an approval from the Director General of Taxes. 7. Bookkeeping at least consist of records concerning assets, liabilities, capital, income and expenses, as well as sales and purchases therefore could be calculated the amount of tax payable. 8. Bookkeeping using foreign language and currency other than Rupiah could be carried out by a Taxpayer after obtaining permission from the Minister of Finance.

9. Recording as referred t paragraph (2) consist of data collected on a regular basis concerning turnover or gross revenues and/or gross income as the basis for calculating the amount of tax payable, including income that is not taxable and/or subject to final tax. 10. Deleted 11. Books, records, and documents which become the basis of Bookkeeping or recording and the other documents including data processing result of accounting which are managed electronically or by an on-line application program must be stored for 1(ten) years in Indonesia, that is the place of activities of the residence of the individual Taxpayer, or the domicile of the corporate Taxpayer. 12. The forms and the procedure of recording as referred to paragraph (2) shall be regulated by or under a Minister of Finance Regulation.