Foreign Investment Tax Research Articles

Antecedents and Consequences of Implementation Work From Home Policy At The Foreign Investment Tax Service Office One In South Jakarta

This research was motivated by the instructions to work, study and worship at home during the COVID-19 Pandemic. State Civil Administration (ASN) are instructed to work at home or later called Work From Home (WFH). The application of the WFH concept has a fairly high level of flexibility. The types of work for ASN that are excluded from carrying out the flexible concept are jobs that are directly related to service users, both the community and other stakeholders. WFH implementation does not always go well, the emergence of a cultural shock to the use of technology, the responsibility to manage household activities that can affect the stress level of employees, as well as disturbances from family members and other problems that occur at home lead to the inability of employees to concentrate while working at home which will effect on employee performance. The Foreign Investment Tax Service Office One (KPP PMA Satu) routinely performs periodic performance measurements. Performance measurement is carried out using the Balanced Scorecard (BSC) strategy. The Organizational Performance Value (NKO) of KPP PMA Satu in 2020 has decreased compared to 2019. Several factors that influenced the decline in NKO were the uncertain global economic conditions due to the pandemic and various online services. This research was conducted at KPP PMA Satu using 6 (six) variables with the aim of knowing the factors that influence the implementation of the WFH policy and the effect of the implementation of the WFH policy on the performance of KPP PMA Satu employees. The number of samples used are 111 employees who implement the WFH policy. The research method used is quantitative with a causal approach where the data obtained is processed using the Structural Equation Modeling (SEM) method. The results obtained are that work from home has a significant effect on employee performance.

A Cross-Tabulation to Know the Relationship between Financial Performance and Leverage on a Company’s Tax Reporting and Tax Compliance

Purpose: Classify the characteristics of taxpayers in paying tax compliance based on financial performance, leverage, and tax reporting and analyze the relationship between financial performance and leverage on tax reporting and tax compliance companies. Design/method: This research was conducted at the Office of the Foreign Investment Tax Service in the Six Regional Offices of the DJP Jakarta, especially the Directorate General of Taxes (KPP PMA ENAM). The population in this study were corporate taxpayers registered at KPP PMA ENAM 2015–2018, namely 750 taxpayers. Sampling using the purposive method obtained as many as 660 companies. Cluster analysis and cross-tabulation were used as analysis methods in this study. Findings: In particular, corporate tax reporting depends on financial performance, but only on high-level corporate clusters that depend on leverage as well. While in the low company cluster (Cluster 1) tax compliance is influenced by these three variables, in the medium cluster (Cluster 2) tax compliance does not depend on these three variables, while in the high cluster (Cluster 3) tax compliance is only influenced by leverage. Originality: The cluster analysis method and the cross-tabulation method are used to analyze the effect of the financial performance and leverage variables on the tax reporting and tax compliance variables.

Mergers and acquisitions in Morocco: reality and perspectives

PurposeThe purpose of this article is to address certain gaps and contribute to enriching the literature on mergers and acquisitions (M&A) in Africa; describe the phenomenon taking into account the particularity of the country; address recommendations to public policies and investors and make this article a ground-breaking article on research into the phenomenon of the M&A market in North Africa.Design/methodology/approachWith description and an exploratory intention, the authors develop phenomenon driven research. As appropriate phenomenon driven research, the authors focus on characteristics of Moroccan M&A market. The authors use scientific investigation to provide descriptions and explanations of the phenomena in order to add a new perspective to the M&A literature in North African region. The authors work on the particularity of companies in Morocco, typology of M&A, geographic areas, socio-economic indicators, trade agreements, politics and culture.FindingsUnderstand that the phenomenon of domestic M&A is a phenomenon of big cities and knows the participation of small and medium enterprises. The political variable, the trade agreements and the socio-economic weight of the countries influence the cross-border M&A in to out. Sharing a border and common culture has no impact on cross-border M&A but the history of colonization has an impact.Research limitations/implicationsThe scientific contribution is first an extension of the neoclassical theory on the initiation of M&A operations. Throughout these 29 years of history, the existence of external shocks such as regulations has influenced the activity of M&A operations. Privatization, partial opening of sectors to foreign investment tax incentives have contributed to the realization of M&A operations.Practical implicationsThis paper also has an economic and practical contribution, as it informs about the absence of M&A operation in the agriculture and agri-food sector in Sub-Saharan Africa. This region recognizes a food shortage that will increase by 70–100% between 2010 and 2050 with a strong population growth. The authors also note that regulations, royal directives, influence the activity and geographic choices of M&A. The political variable remains decisive for the cross-border M&A activity between Morocco and Algeria, but encourages acquisitions in countries in West and Central Africa.Originality/valueM&A research in Africa is poor and suffers from several shortcomings; these barriers push researchers to produce fewer papers on this phenomenon. Through data collection, description and explanation, the authors tried to produce a paper focusing on the M&A phenomenon in a country in North Africa. To the authors’ knowledge, no article has dealt with this phenomenon in this country which is known for its strong M&A activity.

Influence of Accounting Information Systems Directorate General of Taxes and Taxpayers Requirements for Tax Compliance Requirements (Research at the Foreign Investment Tax Office 5)

On going and sustainable activity that aims to increase the prosperity of the people both materially and spiritually is a National Development. To realize that goal, we need a lot of attention to the problems of development financing. One of the attempts to create an independence of a nation or country is to dig the source of fund which comes from domestic such as tax.ThereforeTax compliance is a significant problem throughout the world, both in developedcountries and in developing countries.Because if the taxpayer does not comply with the act willultimately lead to reduced state tax revenue, where the case could be caused by the DirectorateGeneral of Taxation Information System which is not going well and the implementation of e-SPTapplication programs are poorly understood taxpayer. The method of research using descriptive methods and verification. With a population of131 tax officials(95 male and 36 female), with a total sample of 71 tax officials, with sampling using purposive sampling,where the determination of the sample with certain considerations. Collecting data usingobservation,libraryresearch, questionnaires, and interviews. The results showed that the Information Systems Accounting Directorate General of Taxationsignificant effect on taxpayer compliance with the positive direction, which means the higher theInformation Systems Directorate General of Taxation then be better tax compliance. Similarly, fortheimplementation of e-SPT significantly influence taxpayer compliance with the positivedirection, which means the higher the e-SPT application of the tax compliance to be good. Thecoefficient of determination shows that together the Directorate General of Taxation InformationSystem and implementation of e-SPT application programs on tax compliance by 51.8.%, Whilethe remaining 48.2% is influenced by other factors such as quality of service and socialization oftaxation regulations. Keywords: Information Systems Directorate General of Taxation, e-SPT Taxawareness, Taxpayer Compliance DOI : 10.7176/JESD/10-16-13 Publication date : August 31 st 2019

Capital Flight from a Small Developing Asia Pacific Economy

Capital flight from a small developing country in the Asia Pacific region, Fiji, is estimated using a variant of the residual approach. The findings show that between 1991 and 2009, approximately US$5 billion, averaging some US$265 million per annum has leaked out of Fiji in the form of capital flight. On an annual average basis, this has translated into 12 percent of Fiji’s gross domestic product; 19 percent of imports bills and 17 percent of lost tax revenues. The implications of this finding is that Fiji’s policymakers need to institute policies that focus on long-term secure and stable business and political environment. Some of these may include making the domestic business and investment environment more attractive, reforming the foreign investment tax incentives, retaining qualified and skilled people, eliminating institutional weaknesses in banking systems, and effective enforcement of banking and customs regulations relating to transfers of financial capital.

The Effect of Corporate Taxes on Foreign Direct Investment in Latin America (Efectos Del Impuesto a Las Utilidades En La Inversión Extranjera En América Latina)

Over the last years, some Latin American Countries have decreased their Corporate Income Tax rates in order to attract Foreign Direct Investment. However, such a policy would have a significant impact only if Foreign Investment's tax elasticity is relatively high. By the same reason, if the elasticity is high increases in the tax rates would have a negative impact on the amount of foreign direct investment a country receives. Unfortunately there is no evidence in the economic literature for the magnitude of this elasticity in Latin American countries. The contribution of this paper is twofold. First, it provides a consistent estimate of the foreign direct investment tax elasticity for Latin America. Second, it considers explicitly the fact that foreign investors have outside options and might decide not to invest in Latin America at all. If the presence of outside options is not considered in the empirical analysis, the estimated elasticity would be biased. The empirical evidence provided by this paper, using a discrete choice model and a panel of 11 Latin American Countries for 1990-2002, shows a point estimate of the tax elasticity of foreign direct investment that ranges between -0.5 and -0.9.

Optimal pollution and foreign-investment taxes in a small open economy

This paper examines pollution and foreign-capital tax policies on the host country's welfare when foreign-investment tax credits are absent or present in the source country. In the absence of tax credits, the optimal policy is a pollution tax with a foreign-investment tax or subsidy. The presence of tax credits may, however, result in a higher investment tax but a lower pollution tax, leading to higher welfare but lower environmental quality in the host country. The source-country's tax credits may cause a switch in the host-country's capital subsidy to a tax, which may improve the environment.

International trade and capital mobility between diversified economies

This paper reconsiders and simplifies the theory of international trade with foreign investment, while concentrating on significant gaps in the analysis of the globally diversified case, where both countries of the two-commodity two-factor model remain incompletely specialized. The analysis goes beyond previous literature by: (1) deriving an important condition for stability of equilibrium; (2) investigating the effects of import tariffs and foreign-investment taxes on the international allocation of capital; (3) examining the actual signs of optimal (first-best and other) tariffs and taxes; and (4) developing new and plausible conditions for existence of global diversification.