The Fundamental Taxation Design of Digital Transaction

DOI

10.2991/978-2-494069-83-1_93How to use a DOI?

Keywords

digital transaction; fairness; Pancasila values; tax compliance

Abstract

This study aims to review how the efforts of the tax authorities to tax digital transactions to improve tax compliance. This research is a review of the provisions and regulations related to digital transactions. The review uses three approaches of historicity, rationality, and policy actuality based on the values of Pancasila as the source of all sources of law. The research results are divided into three levels of policy review. At the level of historicity, digital transactions with traditional transactions have the same tax obligations. At the level of rationality, digital transactions are transactions across jurisdictional borders, the aspect of income tax taxation requires criteria for determining permanent establishment. At the level of actuality, tax authorities are required to carry out unilateral measures and global consensus refers to the provisions of the OECD and the hierarchy of tax laws. The value of Pancasila justice is the foundation of the proposed tax policy that balances the obligations of foreign tax subjects with domestic tax subjects through the concept of significant economic presence. This research contributes practically to tax authorities in formulating digital transaction tax collection policies so that they can improve tax compliance.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - I Nyoman Darmayasa
PY  - 2022
DA  - 2022/12/30
TI  - The Fundamental Taxation Design of Digital Transaction
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (iCAST-SS 2022)
PB  - Atlantis Press
SP  - 524
EP  - 529
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-83-1_93
DO  - 10.2991/978-2-494069-83-1_93
ID  - Darmayasa2022
ER  -