Tax Rules Research Articles

Dampak Kebijakan PP Nomor 55 Tahun 2022, Kesadaran Wajib Pajak, Dan Kepercayaan Kepada Pemerintah Tehadap Kepatuhan Wajib Pajak UMKM

The government has made various efforts to increase MSME taxpayer compliance, this is because the high contribution of MSMEs to GDP (Gross Domestic Product) reaches 60.5 percent and can absorb 96.9 percent of the total national workforce (Hidranto, 2022) . One of the government's policies is to provide a reduction in tax rates for MSMEs by issuing Government Regulation No. 55 of 2022 concerning Adjustments to Income Tax Rules. This rule, especially in Chapter Taxpayer compliance does not come from external factors of the taxpayer but from the taxpayer's self, namely the taxpayer's awareness and trust in the government. This research aims to empirically test Government Regulation Policy No. 55 of 2022, Awareness and Trust in the government regarding taxpayer compliance. This research was conducted on individual MSME Taxpayers registered at KPP 1 and KPP 2 Padang.Using the Sovin formula provides a minimum sample size of 99.22 which is rounded up to 100 individual MSME taxpayers in Padang City. This research uses a data collection method by distributing questionnaires to respondents in the form of a list of questions prepared on paper and Google form. The results of this research prove that there is no influence of the policy of Order No. 55 of 2022 with a reduction in MSME income tax rates on MSME taxpayer compliance in Padang City, while the variables of awareness and trust in the government have an influence on MSME taxpayer compliance in Padang City.

Income Tax “Need to Knows” for Military Families

This publication discusses general information about income tax terminology, general information about income tax rules, rates, and refunds, military-specific income tax challenges, military-specific income tax regulations, five income tax planning tips for military families, and income tax resources. Written by Barbara O’Neill, Martie Gillen, and Kristen Jowers, and published by the UF/IFAS Department of Family, Youth and Community Sciences, January 2024.

Tax evasion, tax reward and the optimal fiscal policy

This theoretical paper studies the optimal fiscal policy in the presence of both pen- alties for tax evasion and rewards for tax compliance. Indeed, the presence of tax rewards changes the behaviour of firms and amplifies the role of the tax authority. In general, tax reward is able to reduce corporate tax evasion. However, the opti- mal fiscal policy depends on the fiscal scenario. Precisely, audit emerges as the main element of fiscal policy when tax evasion is widespread (negative scenario); whereas, in the positive fiscal scenario (where most people comply with tax rules), the range of fiscal policy choices is broader.

Parliament

This overview highlights the Parliament’s (i) recommendation to further reform corporate tax rules at the EU level; (ii) discussions of draft opinions on BEFIT, HOT and FASTER; and (iii) approval of the report proposing amendments to DEBRA.

Earth to OECD: You Must Be Joking – The Subject to Tax Rule of Pillar Two

In this article, the author examines the implications of the Subject to Tax Rule (STTR) of the OECD’s Pillar Two for developing countries. He argues that the STTR is unreasonably complex, and will not be advantageous for developing countries. Accordingly, developing countries should be very cautious in adopting the STTR.

ATURAN PERPAJAKAN ATAS NATURA DAN/ATAU KENIKMATAN DI INDONESIA: ISU DAN TANTANGAN

This research aims to identify various issues and challenges as a result of an adjustment within the imposition of Income Tax Article 21 (“PPh 21”) upon in-kind benefits in the form of treatment of benefits (facilities/service) and in-kind remuneration (goods), whereby prior to the enactment of Law Number 7 of 2021 on the Harmonization of Tax Regulation (“UU HPP”), in-kind benefits were not included as the object of PPh 21. This research focuses on the Ministry of Finance Regulation Number 66/2023 on Income Tax Treatment of Replacement or Reward in Connection with Work or Services Received or Obtained in the Form of In-Kind Benefits (“PMK 66/2023”) as a technical regulation derived from the UU HPP which regulates in more detail the imposition and collection of taxes on in-kind benefits. The provisions in PMK 66/2023 will be analyzed in a structured manner using the principles of an ideal tax system–consisting of: revenue productivity, equity, and ease of administration–in order to comprehensively identify the issues and challenges within the implementation of this regulation. This research concludes that the government's main goal in significantly changing the taxation rules on in-kind benefit is to meet revenue productivity. However, in fulfilling this, the principles of equity and ease of administration have not been properly realized, given the fact that there are number of issues in the PMK 66/2023, which need to be further addressed. Accordingly, this research provides theoretical and practical contributions to the further development of tax regulations on in-kind benefits, whereby expected to accommodate the various issues and challenges as identified in this research.

Analysis of International Disputes over Digital Services Tax and Exploration of China’s Approach

With the continuous emergence of emerging information technologies, the digital economy is developing rapidly around the world. The global operations of multinational digital enterprises no longer rely on physical presence. The effectiveness of permanent establishment rules based on the traditional real economy settings has been questioned by market countries, which actively participate in Market countries where digital business value is created do not receive corresponding taxation rights. Multinational digital companies take advantage of loopholes in digital platforms and current tax rules to actively carry out tax planning, resulting in digital companies’ global tax burden being much lower than that of traditional companies. Tax sources cannot be fairly and reasonably distributed in the places where value is created and profits are taxed, which harms the tax interests of market countries. Against the background of slow progress in the OECD global unified solution, as a temporary unilateral measure to address the challenges of the digital economy, some countries have taken the lead in imposing digital service taxes on specific digital businesses of digital enterprises. On the basis of discussing the relevant concepts and theories of digital service tax, this article discusses the relevant concepts and theories of digital service tax, and analyzes the international development of digital service tax and the positions of various countries around the world. Further analyze the impact of digital service tax collection from three aspects: national fiscal revenue, tax trade disputes and international tax order coordination, and analyze the impact of digital service tax on digital enterprises. Then the perspective is focused on my country, sorting out and summarizing my country's relevant digital economy tax policies, and analyzing the impact of digital service tax on my country in the near term and long term based on the development of my country's digital economy. Finally, based on the previous comparative analysis and impact analysis, my country's tax system for promoting the development of the digital economy has gradually improved and actively participated in the reshaping of international tax rules, and my country's response strategies under the digital service tax have been proposed. The different levels of digital economic development between China and countries that have levied digital service taxes will inevitably lead to disharmony in the international tax order. The study found that the fiscal revenue brought by digital service tax is limited and has a certain degree of distortion effect. It is necessary to actively participate in international cooperation and make China's voice heard before reaching a consensus on international tax rules. In the long term, we should focus on the connection between the two-pillar plan and the domestic tax system, strengthen tax information exchange, improve the domestic digital tax rule system, and promote the healthy and sustainable development of my country's digital economy.

Enhancing Tax Compliance in Indonesian Government Institutions: Identifying and Mitigating Inhibiting Factors

Tax compliance in Indonesian government institutions significantly affects national revenue and resource allocation. This study addresses tax non-compliance by identifying its causes and proposing mitigation strategies. The research aims to understand why government institutions in Indonesia struggle with tax compliance, with objectives including identifying inhibiting factors, assessing their impact, and proposing mitigation strategies. This integrated approach encompasses various elements, including a descriptive analysis approach, comprehensive literature research, comparative analysis, a qualitative research approach, and secondary data collection. Findings highlight complex regulations, inadequate tax education, and inconsistent enforcement as compliance hindrances. The study quantifies their impact. Proposed solutions include simplifying tax rules, enhancing tax education, and enforcing tax laws. In conclusion, this research informs policymakers, tax authorities, and government officials about tax compliance challenges, offering insights to improve tax collection and resource allocation, potentially increasing government revenue and promoting sustainable development.

Taxation of digital financial assets in the context of classical rules of taxation

Subject. The existing mechanisms of taxation of transactions with crypto assets on the territory of the Russian Federation are analyzed in the article. The choice of the research object is due to the increasing role of crypto assets in the modern Russian economy, as well as the necessity to propose new mechanisms to ensure the tax security of the state in the face of new challenges.The purpose of the study. The existing mechanisms of taxation of transactions related to the use and turnover of crypto assets in Russia are considered. Authors analyze both the main problems faced by individuals and legal entities operating with cryptocurrencies. The analysis of the current legislation is provided, possible ways to improve the legislation are suggested.Methodology. In the course of their work, the researchers were guided by philological and systematic ways of interpreting current legal norms, as well as existing explanations of financial authorities related to current approaches to taxation of transactions with crypto assets.Conclusions. It is concluded that the approaches proposed by the legislator to taxation of transactions with crypto assets are similar to the mechanisms that apply to traditional financial instruments, but at the same time, assets that are not similar to traditional ones remain outside the regulation.

Kebijakan Publik atas Penerapan Pajak Karbon di Indonesia

The impact of climate change has become a global challenge that needs to be addressed together. Indonesia is one of the countries vulnerable to climate change due to declining CO2 carbon emissions. The declining air quality in Indonesia is one of the reasons why carbon tax should be implemented immediately. The main objective of a carbon tax is to change the behavior of economic actors to shift to lower-carbon economic activities. In Indonesia, regulations on carbon tax have already been made. Regulations regarding carbon tax rules have been regulated in article 13 of Law Number 7 of 2021 concerning Harmonization of Tax Regulations. The purpose of this study is to provide an overview of the concept of carbon tax implementation in Indonesia. Methodology research methodology is a literature review. The data presented is secondary data obtained from internet sites, national seminar materials, and national and international journals. The result of the research is the concept of carbon tax implementation through emission trading using cap-and-trade scheme. Provisions regarding the procedures for calculating, collecting, paying or depositing, reporting, and mechanisms for imposing carbon tax, and procedures for reducing carbon tax and/or other treatment for fulfilling carbon tax obligations, are regulated by the Minister of Finance Regulation which is currently being prepared by the government.

Transfer Pricing Regime under the Indian Income Tax Act 1961 and Income Tax Rules 1962 – Inadequacies, Deficiencies, Problems and Proposed Solutions

The author makes a case for the inclusion of the OECD Guidelines into the Indian transfer pricing regime. The article takes a bird’s eye view of the Indian transfer pricing regime and therefore undertakes a high-level analysis. In doing so, it brings to the fore the shortcomings in the Indian regime for consideration by the tax policymakers – ministry and revenue officials who frame India’s international tax and transfer pricing policies. For this purpose, the author adopts the perspective of the revenue/tax authorities.

The Role of Taxpayer Awareness in Enhancing Vehicle Tax Compliance in Indonesia: An Attribution Theory Approach

This study explores the dynamics of taxpayer compliance with motor vehicle taxes, shedding light on the intricacies of transport taxation. Focusing on the mediating role of taxpayer awareness, the research employs a quantitative approach with Likert scale measurements. Primary data is gathered from 300 respondents in Bekasi Regency, Indonesia, out of a population of 1,789,548 taxpayers, using accidental sampling. SEM-PLS analysis reveals that adherence to tax rules, system updates, understanding tax intricacies, higher incomes, and taxpayer awareness contribute significantly to enhanced tax compliance within the context of motor vehicle taxation. Notably, the study finds that public education about taxes does not significantly impact compliance in this specific domain. The factors influencing taxpayer awareness encompass tax rules, system upgrades, tax knowledge, public education, and income levels. While taxpayer awareness is linked to system upgrades, tax knowledge, public education, income levels, and compliance, it doesn’t connect with tax rules and compliance in the realm of motor vehicle taxation. The research implications provide valuable guidance specifically tailored to policymakers and tax authorities dealing with transport taxation. Emphasizing the significance of tax penalties, system modernization, and tailored taxpayer awareness programs can foster improved compliance in the motor vehicle taxation domain. Policymakers are urged to reassess the efficacy of tax socialization initiatives in the context of transport taxation, exploring alternative approaches for public tax education in this specific domain. Understanding the nuanced interplay among tax rules, system upgrades, tax knowledge, public education, income levels, taxpayer awareness, and compliance in the realm of motor vehicle taxation can inform targeted interventions for an overall enhancement of tax adherence in this specialized area.

АНАЛІЗ ВПЛИВУ ПОДАТКОВИХ ПЛАТЕЖІВ НА ФІНАНСОВИЙ СТАН АГРОБІЗНЕСУ

Existing problems in the Ukrainian economy are often related to the tax system, namely the existing tools for tax regulation of agribusiness activities. Taxation is an important component of the system of financial regulation of the development of agro-industrial production, one of the levers of influence on solving problems related to the social importance of agriculture. Gradually, the country is trying to change, in particular by revising the norms of the Tax Law. The article examines the financial condition and structure of agribusiness under the influence of tax payments. Tax aspects of state regulation of agribusiness are analyzed. The composition and nature of the influence of tax payments on the state of agribusiness is substantiated. It has been proven that the current tax mechanism is too loyal to some taxpayers, as a result of which the budget of Ukraine does not receive a large share of income in the form of tax revenues, and small agricultural producers are forced to "survive" every time in such a competitive environment. Also, the study showed that tax payments have a negative impact on the financial condition of the agricultural sector of Ukraine. High tax rates lead to: a decrease in the profit and profitability of agricultural enterprises; decrease in investments in the agricultural sector; increase in the debt burden of agricultural enterprises; decrease in the competitiveness of Ukrainian farmers on the world market. Attention is focused on the urgency of implementing European experience and stabilizing the general picture of the financial state of agribusiness. Experts in this area claim that high tax rates and complex tax rules create a significant burden for agricultural enterprises, which can negatively affect their profitability, investment activity and competitiveness. We come to the conclusion that reforms of the tax system of Ukraine are necessary to stimulate the development of the agricultural sector and improve its competitiveness. Reforms should include, first of all, lowering tax rates on agricultural products and services, then simplifying tax rules and procedures, introducing tax incentives for investments in the agricultural sector, ensuring access to preferential loans for agricultural enterprises.

Modern Tax Trends and Economic Growth in a Turbulent World: Insights from Developed and Developing Economies

The article examines recent trends in tax level and structure changes within developed and developing economies in relation to economic growth. The study’s significance stems from increasing geo-economic turbulence and emerging risks in the global economy, necessitating fiscal regulation. The analysis spans the period from 2009, post the Great Recession, to the present day. We tested the hypothesis that discernible patterns could be identified through statistical analysis regarding the relationship between tax indicators (level and structure) and economic growth indicators. However, no such clear patterns were found. In essence, it cannot be definitively concluded that reduced tax levels and/or increased indirect tax shares do explicitly foster national economic growth. Tax impact on economic growth varies significantly across developed and developing economies, presenting a complex and nuanced picture. The nature and strength of this influence are largely shaped by the specific circumstances of each location and period. In order to identify their unique impact, counterfactual analysis is required. In the course of further research, it is important to consider, firstly, the increased fiscal activism of the post-pandemic period: in this case, the research outcomes may be different from those obtained for the period already examined. Secondly, considering the ongoing processes of geo-economic fragmentation, it is recommended to re-examine the influence of taxes on economic processes. This investigation should adhere to the evolving framework of new macro-regions worldwide, rather than the conventional dichotomy of developed and developing economies. Participants within these macro-regions, interconnected through supply and value chains, will need to work together to align their tax rules and policies for mutual benefits.

«Золотопромышленность приносит теперь лишь одни убытки…» (Кризис золотодобычи на рубеже XIX–XX вв. на страницах сибирской печати)

The article describes contents and methods of material presenting about the crises, being evident in gold-mining industry at the edge 19-20 centuries, in official and informal press. The authors pay attention at insufficiently studied gold-mining problems – changes in taxation rules and labour conditions of middle level employees. Research of informal press position on gold-mining problems enabled to come to the conclusion: oppositional press supported measures directed by the Government and devoted to industry difficulties overcoming, stated as reasonable.

ОСОБЛИВОСТІ ОПОДАТКУВАННЯ КРИПТОВАЛЮТИ В РІЗНИХ КРАЇНАХ СВІТУ

Every year, cryptocurrency is slowly but surely conquering the whole world. Thanks to this trend, its acceptance is increasing, and more and more options for its application are appearing. Large global companies are showing interest in blockchain and cryptocurrency, investing in them. It is quite obvious that these events will contribute to the rapid expansion of the market. Crypto assets continue to gain popularity and their adoption has become something more important and real. The number of stores accepting cryptocurrency as a payment method is increasing, crypto assets are being used as a form of fundraising, and you can even travel the world with cryptocurrency. In addition, the expansion of the use of cryptocurrency in world markets is explained by the rapidly growing interest in it on the part of the population of various countries of the world in the desire to earn or at least protect their income from the devaluation of national currencies. A direct analysis of the current rules of cryptocurrency taxation in foreign countries showed the existence of a number of differences in the implementation of tax regulation of transactions with cryptocurrency, because different approaches to the definition of cryptocurrency in foreign countries cause different methods of its taxation. That is, the fiscal policy regarding taxes on cryptocurrency in the countries of the world depends on how their legislation interprets the concept of virtual money: in the USA it is property, in Britain it is a capital asset, Italy considers it as a foreign currency. In Malta, El Salvador, Malaysia and Singapore, cryptocurrency taxation is absent or can be avoided if certain conditions are met. The global cryptocurrency market is at the stage of formation, therefore the regulatory and legal framework in various countries of the world is actively developing, adapting to the rapidly changing reality. Gradually, the cryptocurrency receives a final determination of its status with the further development of effective mechanisms of tax administration to ensure transparency and fairness of taxation, that is, the creation of tax legislation in this area.

The Metaverse: Problem of Adapting Tax and Legal Structures

The article is devoted to the analysis of theoretical and legal aspects of income taxation and transactions in the metaverse. The scientific interest of the author is connected with the problems of adapting tax and legal structures to economic relations, which are generated by unique technologies of the virtual world. Purpose: to reveal the legal nature of the metaverse economy for tax purposes; to identify the most common problems associated with the application of tax legislation. Methods: the study is based on the methods of comparison, analysis, synthesis, generalization, and formal-logical method. Results: analysis of the bases and principles of taxation of income and transactions in the metaverse (income tax, value added tax), analysis of the tax consequences of specific situations, formulation of basic principles of taxation. Conclusions: the conducted scientific analysis confirms that national regulators and tax authorities are only at the stage of understanding the problems that arise in the metaverse, including issues related to determining the moment of income, evaluating transactions for the exchange of virtual goods for virtual or fiat currencies. The author comes to the conclusion that the technical impossibility of flawlessly accurate calculation of the tax base and determination of the source of income in a space of which anonymity is an integral component should not serve as a basis for non-taxation. The solution to the problem of creating tax and legal structures focused on the metaverse consists in taking into account the specifics of legal situations (a hybrid approach), using presumptive taxation in segments of high risk of losses for the national tax base, introducing a special regime for cases when income is received outside of entrepreneurial activity, is insignificant, and is of a one-time nature. The article points out the need for tax rules to comply with the basic principles of legislation on taxes and the inadmissibility of excessive tax burden.

ВПЛИВ ПОДАТКОВОГО ЛАНДШАФТУ КРАЇНИ НА ПОДАТКОВЕ ПЛАНУВАННЯ ТНК В УМОВАХ ПРОЄКТУ BEPS

The article notes that in the context of globalization, multinational corporations exert an increasing influence on the economies of their home countries, host countries, and the overall state of international economic relations. The authors underline that tax planning is one of the TNC activities that grabs attention of the global public in terms of both its favorable and unfavorable effects. The article offers its own definition of the term «tax landscape», in which, unlike the existing ones, vertical, horizontal and temporal aspects are distinguished. The vertical aspect is presented as a synthesis of the supranational level of taxation and the national one; horizontal, as a system of tax rules and laws within a separate state; temporal, as a change in the main elements of taxation over time. It has been proven that at the current stage of formation of tax landscapes to characterize the supranational level, it is necessary to take into account the elements of taxation defined as part of the implementation of the international BEPS project: the global minimum tax, tax rates for surplus profits, and surplus profits as an object of taxation. The authors have been able to divide the studied countries into three groups depending on the level of direct taxation: high (United States, Canada and Australia), moderate (Great Britain, France, Italy, India, Germany and Switzerland), and low (China and Saudi Arabia). The first group (the United States) and the second group (the United Kingdom, Germany, France, Switzerland, and Italy) have been found to have the greatest tax losses as a result of «tax havens.» The level of direct taxation (profit and capital) in the countries of registration and countries of digital presence, the volatility of tax legislation, and compliance with the conditions of tax justice have been proposed as factors of the tax landscape to be taken into account by transnational corporations when developing tax planning strategies.

Tax In History: CFCs and Tax Treaties: Historical Elements for the IIR Debate

This article revisits the OECD Commentary’s position on the compatibility of CFC rules and tax treaties from a historical perspective. It highlights that the key (technical) argument behind the compatibility endorsed by the Commentary rests on the anti-abuse character of the rule. This backdrop is of relevance for the analysis of rules that purport to have a similar mechanism but that lack the anti-abuse character – including worldwide income taxation rules and the Income Inclusion Rule (IIR) under Pillar 2. The article posits that these situations are beyond the scope of the ‘technical argument’ and, therefore, cannot rely on the OECD Commentary to support their compatibility with tax treaties. Controlled foreign corporation rules, tax treaties, income inclusion rule, worldwide taxation

Options for multilateral solutions to international taxation issues and their assessment from the perspective of the tax security of the state

The article was prepared as part of a study aimed at identifying fundamental theoretical approaches to the legal provision of the fiscal interests of the state in the context of the transformation of tax relations and tax law institutions under the influence of the digital transformation of the economy and developing recommendations for creating an effective model of legal regulation of taxation in Russia as a means of ensuring the tax security of the state, which is affected by new challenges. From the point of view of the tax security of the state, the need to ensure compliance with the fiscal interests of the state requires the transformation of essential approaches to regulating tax relations. Given that the Russian economy has faced new challenges in recent years, it seems advisable to explore not only the challenges themselves, but also ways to respond to them. It is noted that the Russian economy is successfully coping with new challenges and, in this regard, it seems relevant to return to the tasks that the state faces from the point of view of both national and international taxation. The article analyzes the projects of the OECD and the United Nations on reforming the taxation rules of international groups of companies. The projects of international organizations are considered as answers to the challenges of tax evasion, as well as to the challenges of the digital economy. The study focuses on the UN initiative to prepare a framework convention on international tax cooperation. The UN initiative is considered from the point of view of taking into account the interests of developing countries. The article also assesses the need to amend Russian tax legislation in the context of new challenges to the tax security of the state. It is noted that the current system of preferential tax regimes, which continues to be improved, meets the interests of Russian taxpayers and the national tax base.