Analysis of Value-Added Tax Treatment of Unit Linked Life Insurance Services
- 10.2991/iac-17.2018.33How to use a DOI?
- Unit Link; Insurance; VAT; Investment Management Services
Unit linked insurance companies have two activities, namely assurance services and investment management services. The purpose of this study is to analyze whether or not unit linked life insurance services are included in the terms of Taxable Services that impose Value Added Tax (VAT), and how the imposition and calculation of VAT are carried out on a Tax Imposition Basis (TIB). Based on a Tax Court Decision case study, there is a dispute as to whether or not unit linked life insurance services impose VAT. There is a difference of opinion between the Directorate General of Taxation (DGT) and insurance companies and judges. The method in this research is descriptive analysis in the form of a case study. Analysis of the VAT treatment of unit linked life insurance services is carried out by interviewing informants and through a study of the literature. The result is that all parties agree that the assurance service does not impose VAT, while there are different opinions concerning the investment management service. Analysis is also carried out on the calculation of the VAT on a TIB for unit linked investment management service as the replacement price based on the investment management fee charged to the customer and the top-up charge of the investment.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Muhammad Ravin Alhakim AU - Yohanes Yohanes PY - 2017/08 DA - 2017/08 TI - Analysis of Value-Added Tax Treatment of Unit Linked Life Insurance Services BT - Proceedings of the 6th International Accounting Conference (IAC 2017) PB - Atlantis Press SP - 184 EP - 188 SN - 2352-5428 UR - https://doi.org/10.2991/iac-17.2018.33 DO - 10.2991/iac-17.2018.33 ID - Alhakim2017/08 ER -