Educoretax

Effectiveness of tax incentives in optimizing corporate income tax revenue: Case study public listed company tax office

2024-08-26T06:16:22+00:00

Tax revenue is a key component of the Indonesian State Budget (APBN) and plays a strategic role in national development. This study aims to analyze the impact of the implementation of the income tax rate reduction policy and tax incentives based on Law Number 7 of 2021 on Harmonization of Tax Regulations (UU HPP) on corporate income tax revenue at Public Listed Company Tax Office. The research methodology used is qualitative descriptive, with primary data obtained through interviews with tax officials and tax consultants, and secondary data from tax revenue documentation and related literature. The findings show that the reduction in corporate income tax rates and the provision of tax incentives for publicly listed companies significantly impact the optimization of tax revenue at the Public Listed Company Tax Office. The largest contribution to corporate income tax revenue comes from companies listed on the Indonesia Stock Exchange (IDX), with a dominant contribution from companies conducting Initial Public Offerings (IPOs). The study also identifies several factors affecting the optimization of corporate income tax revenue, including tax awareness and corporate tax morale. These findings provide important insights into how tax policies can be optimized to improve taxpayer compliance and tax revenue, as well as their contribution to national economic growth.

International tax dispute resolution through mutual agreement procedure in Indonesia: Past, present, and future

2024-08-05T14:48:33+00:00

Mutual Agreement Procedure (MAP) is widely recognized as an international tax dispute resolution mechanism to resolve double taxation among jurisdictions, generally governed under Article 25 of double taxation agreements. To strengthen the effectiveness and efficiency of MAP, the Organisation for Economic Co-operation and Development (OECD) released the BEPS Action 14 report. To adapt to international best practices and peer-review recommendations, Indonesia, under the Directorate General of Taxes (DGT) Ministry of Finance of Indonesia, enacted several changes to its MAP domestic rules. This study aims to provide an analysis of developments of MAP regulations in Indonesia and to analyze its implementation to relieve double taxation and to adapt to both international best practices and international examinations through peer review in the Forum on Tax Administrations (FTA) on MAP. The author uses a doctrinal-empirical method with a historical approach with data set from 2016 to 2022. The findings indicate that Indonesia has had positive developments in its legal framework and practices in successfully concluding many MAP cases within the recommended time frame of 24 months. To enhance MAP in the future, DGT needs to deliver detailed guidance on multilateral MAP, to provide a secure transparent digitalized administration system to both treaty partners and taxpayers, and to be aware of MAP arbitration with the recent development of global consensus under Two-Pillar Solution.

Can reducing corporate income tax rates decrease tax avoidance?

2024-04-13T16:14:19+00:00

This research aims to examine and analyze the effect of reducing corporate income tax rates on tax avoidance practices carried out by non-cyclical consumer sector companies. This research involves secondary data analysis using the Panel Data Regression approach with 6 research samples taken from the non-cyclical consumer sector on the LQ45 index for the 2018-2022 period. The total sample used in the study amounted to 30 observations based on purposive sampling. The test results show that reducing the corporate income tax rate positively and significantly affects tax avoidance practices in non-cyclical consumer sector companies on the LQ45 index. This research is expected to encourage the government to formulate other tax incentive policies and provide insights into the effectiveness of the implemented tax policies. One of the expected objectives of companies utilizing tax incentives is to accelerate the economic growth of society. Lower tax burdens are hoped to encourage companies to expand their businesses and potentially absorb more labor, triggering multiplier effects in the economic sector to advance public welfare. In terms of literature, this research contributes to enriching the discussion about the effect of reducing corporate tax rates on companies' tax avoidance, and it is expected to contribute to the development of tax accounting literature.

MSME taxpayer compliance in Pekanbaru from the perspective of tax understanding, tax sanctions and tax socialization

2024-05-10T16:35:47+00:00

The tax authorities in Indonesia continue to make extensive efforts to increase tax revenue, which is the main source of state revenue. This extensification focuses on increasing individual tax revenue, especially in the Micro, Small, and Medium Enterprises (MSMEs) sector. This study aims to analyze the effect of tax understanding, tax sanctions, and tax socialization on the level of taxpayer compliance of MSMEs in Pekanbaru. The study uses a quantitative method with the Structural Equation Model (SEM) approach. Data were obtained through an online questionnaire survey from MSME business actors in Pekanbaru City. A purposive sampling technique was used to select 32 respondents as research samples. The sample criteria include business actors domiciled in Pekanbaru who calculate and pay taxes independently and meet MSME criteria based on applicable regulations. The study results indicate that tax understanding and tax sanctions positively affect the level of taxpayer compliance of MSMEs in Pekanbaru. However, tax socialization does not show a significant effect on taxpayer compliance. This study provides insight into tax compliance patterns outside Java that can be considered when making regulations by the tax authorities in Indonesia.

The influence of tax knowledge, tax awareness, and tax morality on tax compliance of MSMEs in the Kebon Bawang Urban Village, North Jakarta

2024-08-20T12:27:27+00:00

This study aims to test and analyze the Influence of Tax Knowledge, Tax Awareness, and Tax Morality on Tax Compliance of MSME Taxpayers residing in the Kebon Bawang Village area, North Jakarta. This research method uses the Nonprobability sampling method using Accidental Sampling and using the Hair formula with a research sample of 100 respondents. The results of this study are (1) Tax knowledge does not have a positive effect on MSME taxpayer compliance. (2) Tax awareness has a positive effect on MSME taxpayer compliance. (3) Tax morality has a positive effect on MSME taxpayer compliance. The conclusion from the study indicates that tax knowledge does not influence SMEs taxpayers' compliance due to the lack of knowledge among SMEs taxpayers about the payment deadlines for their tax obligations.