This research focuses in examine government and regulation policy related to Taxation for philanthropy activities. The lack of clarity in existing tax regulations that regulate philanthropy activities serves as a background of this research. In this research, philanthropy defines as any activities that have strong relation with social activities. In reality, this kind of activities are still facing problems related to taxation for those who are the donator; the recipient of the donations; and the collector of the donations. The lack of responsiveness in tax regulation has hampered the flourishing philanthropy activities, including the likely tax benefit from government in encouraging the philanthropy activities. Some regulations at ministerial level have been passed. However these regulations raise the question to whether these regulations has been sufficient enough in accommodating philanthropy activities.

This research started from December 2016 until May 2017. The methodology of this research is a combination between doctrinal and empirical legal research. The empirical legal research uses in-depth interview as data collection techniques. The participants of the interview consist of stakeholder including, non-governmental organisation, philanthropy activists, Directorate of Taxation Ministry of Finance, companies, foundations, and other relevant stakeholders.