1. Earnings Concept
According Judisseno income is the amount of money received for work done of individuals, agencies, and other business forms that can be used for economic activities such as consume and or accumulate and increase wealth. While Prat stated "Net income is the difference between the revenues generated by a company in a particular time period and the expenses required to generate those revenues."

According to the Basic Framework for Preparation and Presentation of Financial Statements, revenue (income) is to increase economic benefits for an accounting period in the form of income and assets increase or decrease in liabilities resulting increase in equity that do not come from investor contributions. Definition of income includes both income (revenues) and profits (gains). Income arising in the implementation of regular activities and the company known as different as sales, service income (fees), interest, dividends, royalties and rent. Benefits other heading reflects that meet the definition of income and may arise or may not arise in the implementation of the usual corporate activities. Benefits reflect the increase in economic benefits and thus are not essentially different from the income.
According to Article 4 paragraph (1) of Act No. 36 of 2008 on the Fourth Amendment of Law Number 7 Year 1983 on Income Tax, which is the additional income is any economic capability received or accrued by either the Taxpayer from Indonesia and from outside Indonesia, which can be used for consumption or to increase the wealth of the relevant taxpayer with the name and in whatever form, including:

a. reimbursement or remuneration related to employment or services received or accrued, including salaries, wages, allowances, honorarium, commissions, bonuses, gratuities, pensions, or other forms of remuneration, unless otherwise stipulated in this Law;
b. a gift from the lottery or work or activities, and awards;
c. profit;
d. profits from the sale or transfer of property including:

1) benefits due to the transfer of property to the corporation, association, and other agencies in lieu of shares or capital;
2) corporate profits, community and other agencies for the transfer of property to shareholders, partners, or members;
3) profit for liquidation, merger, consolidation, expansion, solution, or a takeover attempt;
4) transfer of property gains in the form of grants, aid or donation, except that given to blood relatives in a straight line one degree, and religious bodies or agencies or educational charities or small businesses, including cooperatives established by the Minister of Finance, as long as there is no relationship with business, employment, ownership or control between the parties concerned;

e. reinstatement of tax payments that have been charged as an expense;
f. interest including premiums, discounts, and compensation for debt repayment guarantee;
g. dividends, with the name and in whatever form, including dividends from insurance companies to policyholders, and the distribution of the remaining business of the cooperative;
h. royalties;
i. rental and other income related to the use of property;
j. receiving or obtaining periodic payments;
k. profit due to debt relief, except to a certain amount stipulated by Government Regulation;
l. foreign exchange gains due to foreign currency;
m. the difference is more due to revaluation of assets;
n. insurance premiums;
o. contribution received or accrued from the association consisting of members Taxpayers who run businesses or professional services;
p. additional net wealth that comes from income not subject to tax.
Whereas in Article 4 paragraph (2) Income Tax Act there are certain income income-specifically regulated as deposit interest and other savings, income from securities transactions and other shares in the stock market, income from transfer of property or the form of land and buildings , and certain other income, the imposition of taxes shall be regulated by Government Regulation. Besides, there are also income tax-exempt as an object that is regulated in Article 4 paragraph (3) Income Tax Act are:

a. 1) aid donations, including alms received by the agency or institution Amil Zakat charity established or approved by the Government and the recipient is entitled to zakat;
2) granted property received by the blood relatives in a straight line one degree, and by religious bodies or agencies or educational charities or small businesses, including cooperatives established by the Minister of Finance as long as there is no connection with business, employment, ownership, or control of the parties concerned;
b. heritage;
c. assets including cash deposits received by the agency referred to in Article 2 paragraph (1) letter b in place of stock or as a substitute for capital;
d. reimbursement or compensation in connection with employment or services received or acquired in kind and or enjoyment of the taxpayer or the Government;
e. payment from the insurance company to an individual in connection with health insurance, accident insurance, life insurance, insurance dual-purpose, and scholarship insurance;
f. dividends or the profits received or accrued as a limited liability domestic taxpayers, cooperatives, state-owned enterprises, or Regional-Owned Enterprises, the capital of the company that was established and domiciled in Indonesia, provided:

1) dividends derived from income reserves held; and
2) for limited liability companies, State Owned Enterprises and Regional Owned Enterprises who receive dividends, stock ownership in the entity that provides the lowest dividend 25% (twenty five percent) of the total paid-up capital and must have an active business outside ownership it;

g. contribution received or accrued pension fund whose establishment was approved by the Minister of Finance, whether paid by the employer or employee;
h. income from capital invested by pension funds as referred to in the letter g, in certain areas as stipulated by the Decree of the Minister of Finance;
i. the profits received or accrued by a member of the limited partnership whose capital is not divided into shares, partnerships, associations, firms, and partnerships;
j. bond interest received or accrued by mutual fund companies for 5 (five) years since the founding of the company's first or business licensing;
k. income received or accrued by a venture capital firm profits from the body parts business partner, founded and run the business or activities in Indonesia, provided such business partner agencies:

1) is a small company, medium, or who carry out activities in the business sectors as stipulated by the Decree of the Minister of Finance; and
2) shares are not traded on stock exchanges in Indonesia.

2. Expense Concept
According to the Basic Framework for Preparation and Presentation of Financial Statements, Expenses (expenses) is to decrease the economic benefits during an accounting period in the form of outflow or decrease in assets or liabilities that result in the decline in equity that are not related to the distribution to investors. The definition encompasses both the burden and the burden of losses incurred in the implementation of the usual corporate activities. Expenses incurred in conducting normal business activities include, for example, cost of sales, salaries and depreciation. Expenses are usually shaped outflow or reduction of assets such as cash (and equivalents), inventory and fixed assets. Loss reflects other posts that meet the definition of the burden that may arise or may arise not from the usual corporate activities, such losses can arise from natural disasters, floods, as well as arising from the release of non-current assets.
Provisions regarding the tax costs provided for in Article 6 and Article 9 of the Income Tax Act governing the costs be deducted from the gross income and not deductible. The costs may be deducted is as follows:

a. fees for obtaining, collecting and maintaining income, including material purchase costs, costs related to employment or services, including wages, salaries, honorarium, bonuses, gratuities, and allowances given in the form of money, interest, rents, royalties, travel expenses, costs waste processing, insurance premiums, administrative costs, and taxes except income tax;

b. depreciation of expenditures to acquire tangible assets and amortization of expenses to obtain the right and the other costs that have a useful life of more than 1 (one) year as referred to in Article 11 and Article 11A;

c. contributions to a pension fund whose establishment was approved by the Minister of Finance;
d. losses due to the sale or transfer of property owned and used in a company or owned for obtaining, collecting, and maintaining revenue;

e. foreign exchange losses from foreign currency;
f. research and development costs that the company conducted in Indonesia;
g. cost of scholarships, internships, and training;
h. receivables that obviously can not be charged, provided that:

1) has been charged as an expense in the income statement of commercial;
2) has submitted the case to the District Court billing or the Bureau of State Debts and Auction (BUPLN) or a written agreement concerning the abolition receivable / debt relief between creditors and debtors in question;
3) have been published in a general or specific; and
4) Taxpayer must submit a list of debts that can not be billed to the Directorate General of Taxes, which shall be further implementation of the Decision of the Director General of Taxes.

There are also expenses not deductible in calculating taxable income as listed in Article 9 paragraph (1) Income Tax Act, namely:
a. profit sharing with the name and in whatever form such as dividends, including dividends paid by insurance companies to policyholders, and the distribution of the remaining business of the cooperative;

b. expenses charged or incurred for the personal benefit of shareholders, partners, or members;
c. formation or accumulation of a reserve fund but not collectible accounts receivable reserves for the bank business and lease with option rights, reserves for insurance businesses, and reserve costs for mining reclamation, the terms and conditions stipulated by the Decree of the Minister of Finance;

d. health insurance premiums, accident insurance, life insurance, insurance dual-purpose, and scholarship insurance, paid by individual taxpayers, unless paid by the employer and the premium is calculated as income for Tax Payer;

e. reimbursement or compensation in connection with work or services provided in kind and enjoyment, except the provision of food and beverages for all employees as well as reimbursement or compensation in kind and the pleasure in certain areas and relating to the implementation of the work as stipulated by Decree of the Minister of Finance;

f. which exceeds the reasonable amount paid to shareholders or to the parties having a special relationship as compensation in connection with work performed;

g. the donated property, assistance or donations, and inheritance as mentioned in Article 4 paragraph (3) letters a and b, except zakat on income actually paid by individual taxpayers Islamic religion and or Taxpayer domestic entity that owned by the Islamic religion to the agency or institution Amil Zakat charity established or approved by the Government;

h. Income Tax;
i. expenses charged or incurred for personal interests or taxpayers their dependents;
j. salaries paid to members of the partnership, firm, or limited partnership whose capital is not divided into shares;
k. administrative sanctions in the form of interest, fines, and increase criminal penalties and fines instead related to the implementation of legislation in the field of taxation.