Taxing Electronic Commerce Cross-Border Transaction: Discussing the Alternative Models for Indonesia

DOI

10.2991/assehr.k.200331.128How to use a DOI?

Keywords

tax, tax avoidance, e-commerce, Base Erosion Approach, Virtual Permanent Establishment Approach, Refundable Withholding Approach

Abstract

The advancement of technology and e-commerce has created a new problem in taxation policy. Most countries, including Indonesia, face the tendency of tax avoidance practices as e-commerce practices can bypass states’ territorial boundaries. In Indonesia, the government has only constructed a regulation to control internal e-commerce practices through Over-the-Top (OTT) regulation draft, without paying attention to the possibility of cross-border transaction tax avoidance practices. This paper focuses on the discussion of alternate models in facing cross-border e-commerce transaction, namely Base Erosion Approach, Virtual Permanent Establishment Approach, and Refundable Withholding Approach. By highlighting the models, this paper discusses advantages and challenges of each approach and how Indonesia could use the alternate models.

Copyright

© 2020, 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/).

Download article (PDF)

TY  - CONF
AU  - Hendri
PY  - 2020
DA  - 2020/04/03
TI  - Taxing Electronic Commerce Cross-Border Transaction: Discussing the Alternative Models for Indonesia
BT  - Proceedings of the 3rd International Conference on Vocational Higher Education (ICVHE 2018)
PB  - Atlantis Press
SP  - 104
EP  - 115
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200331.128
DO  - 10.2991/assehr.k.200331.128
ID  - 2020
ER  -