IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i10p1352-1363.html
   My bibliography  Save this article

Income Tax Policy Over Digital Companies: Study in Indonesia

Author

Listed:
  • Amelia Cahyadini

    (Department of Administrative Law, Faculty of Law, Universitas Padjadjaran, Indonesia)

  • Yulinda Adharani

    (Department of Environmental and Spatial Law, Faculty of Law, Universitas Padjadjaran, Indonesia)

  • Sherly Ayuna Putri

    (Department of Civil Law, Faculty of Law, Universitas Padjadjaran, Indonesia)

Abstract

This study was conducted to examine and find the application of the digital company’s Income Tax imposition based on the principle of effectivity. In addition, this study was also carried out to determine the Income Tax Regulation on digital companies to realize tax sovereignty in the digital economy era, especially for Indonesia. To obtain data and information in this study, the authors used qualitative research methods. Considering that income tax has been regulated in Indonesian laws, this study uses a juridical normative approach, without neglecting empirical facts that occur in the development of the digital economy. The constraints of digital company income tax in Indonesia can be categorized into three main things, namely tax awareness, rational attitude, and the condition of tax law in Indonesia. To overcome this, the government can determine policies that are comprehensive in nature regarding digital company services both regarding the rights and obligations of operating in Indonesia, including regarding income tax obligations by taking into OECD consensus.

Suggested Citation

  • Amelia Cahyadini & Yulinda Adharani & Sherly Ayuna Putri, 2023. "Income Tax Policy Over Digital Companies: Study in Indonesia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 1352-1363, October.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:10:p:1352-1363
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-10/1352-1363.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/income-tax-policy-over-digital-companies-study-in-indonesia/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hofmann, Eva & Voracek, Martin & Bock, Christine & Kirchler, Erich, 2017. "Tax compliance across sociodemographic categories: Meta-analyses of survey studies in 111 countries," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 63-71.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fatas, Enrique & Nosenzo, Daniele & Sefton, Martin & Zizzo, Daniel John, 2021. "A self-funding reward mechanism for tax compliance," Journal of Economic Psychology, Elsevier, vol. 86(C).
    2. Dong, Sarah Xue & Sinning, Mathias, 2022. "Trying to Make a Good First Impression: A Natural Field Experiment to Engage New Entrants to the Tax System," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 100(C).
    3. Devista Yoga Prasetyo & Priyo Hari Adi & Theresia Woro Damayanti, 2020. "Overconfidence, Gender and Tax Compliance - the Indonesian Evidence," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(4), pages 135-143.
    4. Enrico Nichelatti & Heikki Hiilamo, 2024. "The Effect of Citizens’ Perception of Governance on Tax Compliance: A Cross-Country Analysis Study for 32 Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(5), pages 1198-1226, October.
    5. Michele Lalla & Patrizio Frederic & Daniela Mantovani, 2022. "The inextricable association of measurement errors and tax evasion as examined through a microanalysis of survey data matched with fiscal data: a case study," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 31(5), pages 1375-1401, December.
    6. Kazi Abdul, Mannan & Khandaker Mursheda, Farhana, 2023. "The new fiscal sociology: a study of universal self-Assessment taxpayers in Bangladesh," MPRA Paper 117151, University Library of Munich, Germany, revised 2023.
    7. ADEGBIE Folajimi Festus & ALEBIOSU Anthonia Opeyemi & OLAOYE Adebayo Samuel, 2023. "Taxpayers Ethical Behaviour on Faithful Presentation of Financial Statements and Timely Filing of Returns in Deposit Money Banks Listed in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(11), pages 196-210, November.
    8. Batrancea, Larissa M. & Kudła, Janusz & Błaszczak, Barbara & Kopyt, Mateusz, 2022. "Differences in tax evasion attitudes between students and entrepreneurs under the slippery slope framework," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 464-482.
    9. Figari, Francesco & Bazzoli, Martina & Di Caro, Paolo & V. Fiorio, Carlo & Manzo, Marco, 2020. "Size, heterogeneity and distributional effects of self-employment income tax evasion in Italy," EUROMOD Working Papers EM18/20, EUROMOD at the Institute for Social and Economic Research.
    10. Paleka Hana & Karanović Goran & Štambuk Ana, 2023. "The Direct and Moderating Effect of Sociodemographic Variables on Tax Compliance Behaviour," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 34-48, December.
    11. Diller, Markus & Kühne, Daniela, 2020. "Framing and loss aversion in tax reporting behavior: Evidence from German income tax return data," Passauer Diskussionspapiere, Betriebswirtschaftliche Reihe B-43-20, University of Passau, Faculty of Business and Economics.
    12. Christos Kotsogiannis & Xavier Mateos-Planas, 2019. "Tax Evasion as Contingent Debt," Discussion Papers 1903, Centre for Macroeconomics (CFM).
    13. Inna Cabelkova, 2021. "Sustainability of State Budgetary Expenses: Tax Compliance of Low-, Middle-, and High-Income Groups—The Evidence from the Czech Republic," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    14. Diana Onu & Lynne Oats & Erich Kirchler & Andre Julian Hartmann, 2019. "Gaming the System: An Investigation of Small Business Owners’ Attitudes to Tax Avoidance, Tax Planning, and Tax Evasion," Games, MDPI, vol. 10(4), pages 1-17, November.
    15. James Alm & Matthias Kasper, 2020. "Laboratory Experiments," Working Papers 2008, Tulane University, Department of Economics.
    16. Enrico Nichelatti & Heikki Hiilamo, 2022. "A fiscal approach to the social contract in sub-Saharan African countries: Looking for opportunities to strengthen trust in government and tax compliance by analysing citizens' perception of governanc," WIDER Working Paper Series wp-2022-144, World Institute for Development Economic Research (UNU-WIDER).
    17. Hana Paleka & Vanja Vitezić, 2023. "Tax Compliance Challenge through Taxpayers’ Typology," Economies, MDPI, vol. 11(9), pages 1-17, August.
    18. Anna Petherick & Rafael Goldszmidt & Eduardo B. Andrade & Rodrigo Furst & Thomas Hale & Annalena Pott & Andrew Wood, 2021. "A worldwide assessment of changes in adherence to COVID-19 protective behaviours and hypothesized pandemic fatigue," Nature Human Behaviour, Nature, vol. 5(9), pages 1145-1160, September.
    19. Hoang, Thon T.C. & Nguyen, Dung T.K., 2023. "Women’s representation in parliament and tax mobilization," MPRA Paper 118367, University Library of Munich, Germany, revised 24 Aug 2023.
    20. Kühne, Daniela, 2020. "Reaction to ambiguity as a signal for tax reporting aggressiveness: Evidence from German income tax return data," Passauer Diskussionspapiere, Betriebswirtschaftliche Reihe B-44-20, University of Passau, Faculty of Business and Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:10:p:1352-1363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.