In Law Number 28 Year 2007 regarding General Provisions and Tax Procedures, it is stated that tax is a

mandatory contribution to the state owed by individuals or entities that are compulsorily based on the
law by not getting a direct reward and used for the state's needs for the greatest prosperity of the
people.

From these definitions, several key elements are seen as follows.

1. Collection
2. Taxes levied under legislation
3. Taxes can be imposed
4. Did not receive or obtain direct contra
5. To finance general government spending

TAX FUNCTION

The tax function consists of two functions, namely the function of the budgeter (budget) and regularend
(regulate).

1. Budgeter Function (State Financial Sources)

Taxes have budgetary function, which means the tax is one source of revenue to finance
government spending, both routine and development. As the country's financial resources, the
government attempted to incorporate as much money to the state treasury.
2. 2. Regularend Function
Taxes have a regulatory function, which means the tax as a tool for organizing or implementing
government policies in social and economic fields as well as achieving certain objectives beyond
the financial sector.