Indonesia Tax Authority Measure on Facing the Challenge in Taxing Digital Economy (original) (raw)

Challenges of Digital Tax Administration Transformation in Indonesia

Business, Management and Economics

The purposes of this chapter are to identify how digital transformation can enhance the efficiency, transparency, and cost-effectiveness of tax administration, leading to increased tax revenue and reduced compliance costs in Indonesia. The results of study indicate that the digital transformation of tax administration in Indonesia is currently in the acceleration stage. The tax authority (DGT) has set a policy for digital transformation in the tax administration system to reduce compliance costs and improve administrative process efficiency, as well as optimize budgetary functions. DGT has developed big data processing from taxpayers and external parties for analysis purposes used by authorities for compliance risk management, business intelligence, surveillance, audit, and more. The challenges of digital transformation in tax administration in Indonesia are the integration of information system applications in DGT. Another challenge is the difference in interests between authoritie...

The Relevance of E-Commerce Tax Application in Indonesia: Based on the Perspective of Taxation Expert

Organum: Jurnal Saintifik Manajemen dan Akuntansi, 2020

This study aims to understand the relevance of e-commerce tax regulations in Indonesia, which were cancelled by the Government. The method used is applied research with explorative study techniques designed in structured questionnaires and interviews with 15 respondents who were judged to have the right expertise with different backgrounds such as consultants, tax observers, academics, managers, e-commerce entrepreneurs, and policymakers. The results showed that it was necessary to revise tax laws to adjust to the digital era's demands soon. In addition, technological innovation in taxation was considered to reduce administrative costs in terms of tax authorities. Big Data tax management was considered to make tax authorities' performance efficient and can anticipate higher costs. The quality of human resources must support technological innovation to bring up a new profession in the future, namely experts who master tax and technology with the term "Taxologist". F...

Optimization of the Use of Technology for Taxpayers in the Tax System in Indonesia

SASI

Introduction: The development of tax reform shows that technology has a very important role. For this reason, the sustainability of tax collection in the State of Indonesia itself has at least an online system based on how taxpayers work to fulfill their obligations. However, the optimization of the application must be properly reviewed first to find out the effectiveness of the technology made.Purposes of the Research: This writing aims to study, analyze and discuss optimizing the use of technology in the taxation sector in Indonesia.Methods of the Research: This paper uses a normative research method, namely research that is focused on providing a systematic explanation that governs a certain category. The problem approach is the legal approach (statute opproach) and the conceptual approach (conceptual approach). The collection of legal materials through primary legal materials is then linked to secondary legal materials. Management and analysis of legal materials is described qua...

SWOT Analysis of Indonesian Tax Administration Innovation in the Digitalization Era

Ilomata International Journal of Tax and Accounting

With the innovation in tax administration services in Indonesia in the digitalization era, it is hoped that it can increase taxpayer compliance and is expected to continuously have a positive effect on state revenues. The purpose of this study is to analyze what are the strengths, weaknesses, opportunities and threats in the implementation of tax administration innovations in Indonesia in the Digitalization Era. The research method used is qualitative with a descriptive approach. The results of the study show that the strengths and opportunities that can be utilized are the reliability of human resources that have been fulfilled, as evidenced by the satisfaction index of DGT service users reaching a scale of 4.1. Technology that can still be developed is also a strength. The high participation of taxpayers in following the innovation policy of tax administration is a very big opportunity with the number of manual SPT users recorded which has decreased by 88.8% in the last five years...

Understanding the Trend of Digitisation of Tax Services in Indonesia: Review of Publication Systematic

The trend of digitizing tax services is an exciting issue to understand. This is closely related to the low level of taxpayer compliance and the development of the digital economy landscape and technological advances that are the main drivers, plus the tax revenue target also increases every year. Comprehensive education on the tax process is needed to build a public understanding of the importance of paying taxes. This is needed to remove the stigma in society that matters related to taxation are complex. To understand the low and high awareness of paying taxes with digital adoption in tax services, we have done data collection from electronic sources. After collecting the data, we then continue with the review process, starting with looking for an in-depth understanding of the study questions. We conducted a coding, evaluation, and in-depth interpretation process to obtain the data findings' validity and reliability. Based on the discussion of data findings, we can conclude that digital tax benefits are faster, better, and more accurate than manual tax services. Tax digitization while increasing taxpayer compliance increases and benefits both parties where taxpayers do not have to make troublesome administration but can be done online directly with the appropriate schedule and attachments, and only with electronic banking administration services.

Adopting BEPS Inclusive Framework in Indonesia:Taxation Issues and Challenges in a Digital Era

BISNIS & BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi, 2021

This research is intended to discuss the new framework of taxing a highly digitalized economy, known as Base Erosion and Profit Shifting (BEPS) Inclusive Framework. This research discusses challenges that will be faced by Indonesia while adopting that new framework into domestic jurisdiction despite its potential benefit for state revenue. Taxing a highly digitalized economy under the physical-presence concept has been considered obsolete and tends to encourage Multinational Enterprises to shift their profit into low tax jurisdiction. This research applies a qualitative approach and research method. The data collection was done through a literature review and expert interviews. Organization for Economic Cooperation and Development (OECD), with the support of G20 members, proposes the solution based on global consensus. The solution is to establish a nexus to allocate taxing rights and profit allocation to the market jurisdiction. Indonesia has formulated a domestic legal basis despite myriad challenges. The challenges include coverage of the establishment of technical legal implementing guidelines and the improvement of the tax authority to optimize its performance. Essentially, this study highlights the legislation and organizational capacity of the Indonesian context. The study finds the ability to establish the technical regulation is seems questionable and similarly to the organization's capability to implement the project.

Functional Aspects of the Development of State Tax Management in the Digital Economy

Proceedings of the Ecological-Socio-Economic Systems: Models of Competition and Cooperation (ESES 2019), 2020

Currently, under the implementation of new information technologies in the sphere of public administration what is one of the priority tasks in the field of e-government development-the transformation of state tax management system, as well as understanding of the functional aspects of its development in digital economy, are of particular importance. Academic interest in-digital economy‖ is due to the appearance of different problems, also in tax management, not only in terms of budget replenishment and tax control, but also of the relationship of tax authorities and taxpayers through the implementation of new digital technologies. In the latter, the problems of the priority of fiscal component and underestimation of regulatory component of state tax management are the most pronounced. This article describes the current problems of state tax management development. The hypothesis of this study defined that the implementation of digital technologies in state tax management is interconnected with the implementation of the fiscal focus of tax policy. To prove it, the contradictions in the attitude to the functional aspects of taxation management were found, the Russian experience in implementing digital technologies was investigated, the effectiveness of such implementation was assessed, several problems were identified and ways to solve them were proposed.

Information Systems and Tax Online in Indonesia, Effect Decrease in Rate, Audit and Organization’s Culture Against Tax Revenue on Foreign Investment Office

International Journal of Engineering & Technology

Since October 2004 Tax Office PMA begin implementing Modern System Administration using Information Systems Directorate General of Taxation (DGT). For ease of service and control of the taxpayer and increase productivity apparat, this office is fully supported by computer-based administration system. Aspects of good governance is also applied to improve the quality and certainty and legal equality to the taxpayer. Modern system of tax administration to embrace the latest technological advances with the various modules of office automation are expected to improve control mechanisms more effectively supported by the adoption of a code of ethics officials at the (DGT), which regulates employee behavior in performing the task. So that the benefits to be gained from the implementation of modernization of tax administration system for taxpayers is simplicity, where the workflow is simpler and certainty that there is certainty in implementing tax regulations. Effect Decrease in tax rates, ...

Taxing Digital Economy Through Online Marketplace in Indonesia

International Journal of Economics and Financial Issues

This article examines the challenges on taxing digital economic performed by Indonesian government through online marketplaces engaged as the withholder of the merchants selling their products through their platform on gross basis. Online marketplace, seen as potential sector contributing to the state revenue. The research show that tax imposition on the merchant through marketplace has raised debates, since the merchant which mostly start-up and micro-business should not be taxed like established business. Small and micro-scale business registered on an online marketplace will potentially change their marketing mode to avoid tax to get higher return on the mode could be detected by government, such as social media. Further, the online marketplace has to do another risky responsibilities beside their core business; withhold the tax and remit it to the government following the prevailing law. The heat debate on the publish lead the government to postpone the policy engaging online marketplace as withholder. As the final solution, the government imposes small percentage final tax for the business who has the turn over classified as SMEs.

Online Tax System Implementation Through Digitalization Of Tax Administration On Cost And Benefit

International journal of scientific and research publications, 2022

The implementation of the tax system through digitalization of tax administration for cost benefits in practice there is still an unpreparedness of the government in preparing internet-based tax service infrastructure which has an impact on benefits for users as well as inefficient spending on online tax revenue, especially in DKI Jakarta. This writing aims to describe the application of an online tax system in terms of costs and benefits in digitizing tax administration. The results of the discussion through a literature review show that there is still a need for corrective steps for tax authorities on behalf of the government in providing online tax service infrastructure in order to improve the ease of access and simplicity of online tax service procedures, which causes a mismatch of benefits expected by online tax users, resulting in inefficiency in terms of tax online contributions on local tax revenue. Improvement of online tax service infrastructure and socialization of tax digitalization by tax authorities are important in maintaining the sustainability of online tax service users.