SYLLABUS

AKU 3501 – TAXATION

Prerequisite: AKU 2102
Credit Hours: 3

Instructor:
Eko Suwardi, Ph.D., M.Sc., Akt.
Accounting Department, Faculty of Economics and Business, Universitas Gadjah Mada
Email: e.suwardi@ugm.ac.id
Office: Faculty of Economics and Business UGM, East Building, 3rd Floor
Office Hours: Wednesday, 09.30-10.30 am; Friday, 09.30-10.30 am

Course Description
This subject discusses taxation which includes taxation theory, tax regulations, tax practices and
tax accounting in the Indonesian context. All types of tax will be discussed in this subject,
namely income, property, value added personal and corporate taxes. In line with decentralization
era, local government taxes are also parts of the topic. Accounting for income tax and value
added tax is also part of the subject matter. Additionally some aspects of international taxation
are also explained and discussed in this subject for example: tax treaty between Indonesia and
other countries and tax credit as a means to avoid double taxation.

Course Objectives
Upon completion of the course students are expected to be able to:
1. explain the underlying theory and regulation of taxation in Indonesia
2. find sources for taxation issues from the major tax rules
3. calculate income, value added and property and local government taxes
4. record taxes in the accounting systems, including reconcile tax rule and accounting standards,
5. calculate tax credit to avoid double taxation
6. prepare the principle steps of tax planning.

Course Material
Required:
1. The Directorate General of Taxation of the Republic of Indonesia: Tax Rules
http://www.pajak.go.id
2. Price WaterHouseCoopers: Indonesian Pocket Tax Book, 2013.
http://www.pwc.com/en_ID/id/indonesian-pocket-tax-
book/assets/IndonesianPocketTaxBook2013,pdf.
3. Jones, Sally M. Principles of Taxation. Boston: McGraw-Hill, 2006.
4. RSMA AJ Associates Indonesian Tax Facts, 12 June 2013
http://www.aaj.co.id/download/Indonesian_Tax_Facts_June_2013.pdf
5. Ministry of Finance, the Republic of Indonesia: Tax Reform
http://www.mod.go.jp/english/tax/tax2010/tax2010a.pdf
6. Eko Suwardi, 2010, Handout: Taxation
 7. Mardiasmo. 2007. Perpajakan, 3rd edition. Yogyakarta: Andi.

Academic Integrity
Academic integrity forms a fundamental bond of trust between colleagues, peers, lecturers, and
students, and it underlies all genuine learning. There is no tolerance for plagiarism or academic
dishonesty in any form, including, but not limited to, viewing the exams of others, sharing
answers with others, using books or notes while taking the exam, copying answers or papers, or
passing off someone else’s work as one’s own. A breach of ethics or act of dishonesty can result
in A FAILURE OF AN ENTIRE COURSE (a grade of “E”).

Teaching Methods
Student is considered as a subject in this class, therefore the class will be conducted as a student
center learning mode. Every student is required to read and submit a chapter/topic summary to
the lecturer before class begins and presents his or her summary in the class. The lecturer leads
class discussions to achieve conclusions, if possible, and offers some other related examples.

Grading
Your grade will be determined based on your total score on the following items:
Paper Presentation 15%
Class participation 20%
Homework and assignments 15%
Mid Exam 25%
Final Exam 25%
100%

Your final score will be mapped to a course grade based on the following scheme:
A 90 or above C+ 65 to 69
A- 85 to 89 C 60 to 64
B+ 80 to 84 D 50 to 59
B 75 to 89 E below 50
B- 70 to 74

Course Outline

Week Topic References

1 Introduction: what is tax, why do we pay taxes? 1,3,6,4
2 Types of taxes and the jurisdiction that uses them 3,6,1,2,5,4
3 Individual Tax 1,2,3,6,7
4 Business Income tax 1,2,3,6,7
5 Value Added tax 1,2,4,6,7
6 Income tax: withholding tax article 21, 22, and 23 1,2,4,6,7
7 Income tax: withholding tax article 24, 25, and 26 1,2,4,6,7
Mid Term Exam
8 Property tax and property requisition tax 1,2,6,7
Week Topic References
9 Local taxes: Hotel and restaurant taxes, advertising 1,2,6,7
and amusement taxes
10 Local taxes: vehicle and local mining tax 1,2,6,7
11 Accounting for taxes – income tax 1,2,6,7
12 Accounting for taxes – value added tax 1,2,6,7
13 International taxation issues 1,2,6,7
14 Tax planning and ethical issues 1,2,6,7
Final Exam