Services Tax Research Articles

Strategic Taxpayer Compliance During the Covid-19 Pandemic: A Study at the Medan Two Intermediate Tax Service Offices

This study aims to analyze strategic taxpayer compliance during the Covid-19 pandemic at the Medan Madya Dua Tax Office using quantitative methods. The research population is 1,966 taxpayers, consisting of 1,800 corporate taxpayers and 166 individual taxpayers. Independent variables include tax incentives, tax counseling, tax sanctions, supervision by Account Representative (AR), and tax audits, while the dependent variable is taxpayer compliance. Data were measured using dummy variables and nominal scales, and analyzed by multinomial logistic regression. The results showed that tax sanctions with a fine category of more than 2,000,000 tended to make taxpayers report tax returns on time with a probability of 59.63% higher than those on time. AR supervision with the SP2DK issuance category also increases the probability of late SPT reporting by 59.23%. The study shows that the variables of incentives, counseling, sanctions, AR supervision, and tax audits significantly affect taxpayer compliance in reporting annual tax returns. It is recommended that further research be carried out at the Primary and post-pandemic Tax Service Offices.

An Overview of Goods and Services Tax (GST) in India

An Overview of Goods and Services Tax (GST) in India

Evaluation Of The Application Of Income Tax On Rent For Domestic Taxpayers After The Enactment Of Psak 73: A Case Study At The Madya Tax Service Office West Jakarta

This thesis discusses the evaluation implementation of income tax on rent for domestic taxpayers after the enactment of PSAK 73: a case study at the West Jakarta Madya Tax Service Office to ensure the gap among the current conditions that need to be followed up to provide suggestions for improvements in taxation and the Madya KPP. The research method used is qualitative with a case study approach. Respondents in this study consisted of Account Representatives and Taxpayers at the West Jakarta Madya Tax Service Office. The data used in this research consists of primary data and secondary data. Data collection was carried out through document analysis and interviews. Qualitative data analysis is carried out by involving data reduction, data presentation, and conclusion. The results of the study concluded that the implications of PSAK 73 for the tax treatment of rent for domestic taxpayers include recognizing rent as an asset and liability and increasing transparency and fairness in financial reporting. The main challenge faced by the West Jakarta Madya Tax Service Office in ensuring PPh compliance on rent after the enactment of PSAK 73 is the lack of Taxpayer understanding of the implications of this standard and the complexity that makes it challenging to fulfill tax obligations. Steps to overcome the problem of implementing income tax on rent include increasing taxpayer understanding, strengthening the audit function, collaborating with related institutions, and issuing guidance from the tax authorities.

Pengaruh Perubahan Tarif Pajak dan Metode Penghitungan Pajak dengan Dikeluarkannya PP Pasal 23 Tahun 2018 Terhadap Tingkat Kepatuhan Wajib Pajak UMKM

This research aims to determine the effect of changes in tax rates and tax calculation methods with the issuance of PP Article 23 of 2018 on the level of compliance of MSME taxpayers. This research adopts quantitative research methods with the Tax Service Office in Central Maluku as the research object. The main population comprises 251 UMKM in the food and beverage sector, officially registered with the Central Maluku Trade Service. The testing methods applied involve normality tests, validity tests, reliability tests, F tests, and T-tests. The research results show that changes in tax rates and tax calculation methods in PP article 23 of 2018 simultaneously affect the level of taxpayer compliance of UMKM employees at service offices—Central Maluku tax. Meanwhile, from partial testing, it was concluded that changes in tax rates and tax calculation methods in PP Article 23 of 2018 had. A partial effect on the level of taxpayer compliance of UMKM employees at the Central Maluku tax service office.

Restaurant Tax Calculation Application and Service Fees for Tax Reporting

Restaurant Tax Calculation Application and Service Fees for Tax Reporting

The effect of algoritmics government, artificial intelligence, and tax service on tax compliance

Taxes are an essential pillar of country's economic growth and sustainable development. Therefore, this study investigates the effect of algorithmic government, artificial intelligence, and tax services on tax compliance. This research uses a quantitative approach with a survey method. The sample was 393 taxpayers. The research instrument used was a questionnaire designed on a Likert scale with five response options. The questionnaire was distributed via the WhatsApp application and email in Google Form format. Data were analyzed using regression. The results found that algorithmic government, AI, and tax services, partially and simultaneously, affect tax compliance among taxpayers. These findings provide insight into how tax compliance can be improved through algorithmic government, AI, and tax services. Therefore, researchers and practitioners can discuss the findings of this research critically and in depth before adapting and adopting them in their future work without ignoring the limitations of this research.

The Corporate Honesty Effect and Its Boundary Conditions: B2B Firms’ Communications on Withdrawal from Russia

ABSTRACT Purpose Against the backdrop of the Russia-Ukraine conflict and ensuing industrial turmoil as well as the pressure of stakeholder sentiments, numerous U.S-based multinational B2B firms announced about their intent to withdraw from the Russian market. This study aims to probe the veracity of this form of corporate communication, exploring the corporate honesty effect by juxtaposing the stated withdrawal intentions against the actual scale of divestment. Methodology/approach We identify 241 cases of response to the Russia-Ukraine conflict pertaining to U.S-based multinational B2B corporations. This includes 34 cases of no withdrawal (i.e., no communication) and 207 cases of announcements about the firm’s intent to withdraw from Russia. For these cases, we calculate the actual scale of withdrawal (Actual Divestment Index) based on the data from Federal Tax Service of Russia and the Central Bank of the Russian Federation. Considering Actual Divestment Index as a fractional measure, we conduct fractional logit regression analysis, where the effect of the withdrawal communication on Actual Divestment Index is interpreted as the corporate honesty effect. Findings Controlling for variables such as firm size, leverage, return on assets, institutional ownership, entry mode, and industry, the analysis reveals that the scope of intended withdrawal – reflected in the stages of no action, non-essential pullout, suspension, partial core, and full core withdrawal – is positively associated with the observed level of divestment. The findings further show that firms with larger corporate resources, higher profitability, and deeper local market exposure exhibit a greater level of corporate honesty. Research implications This study builds on the MFHB framework (Cooper et al., 2023) that differentiates several distinct dimensions of corporate honesty. Our research applies these dimensions to formulate an operational definition of corporate honesty which emphasizes the fidelity to the firm’s communicated intent, situationally activated in response to external pressures and emergent socio-political sentiments, in the context of established domestic/international business relationships. Also, we contribute to the current body of knowledge on corporate honesty by introducing a method of measuring the corporate honesty effect. Practical implications Marketing managers of multinational B2B firms must endeavor to maintain the stakeholder perceptions of corporate legitimacy by constantly monitoring the level of corporate honesty effect, specifically during the time of war-induced disruptions and turmoil in B2B markets. Managers of B2B firms with larger resources, better profitability, and deeper market exposure can leverage their advantageous position to further highlight and promote their actual performance in this aspect to assuage the concerns and negative sentiments of stakeholders. Originality/value/contribution This research contributes to theories of corporate honesty by contextualizing the concept of corporate honesty within the framework of communication-action congruence. This is done in relation to the strategic divestment communications and actions undertaken by B2B multinational firms in a market embroiled in moral turmoil during a geopolitical conflict. Our alternative operationalization of corporate honesty facilitates a quantifiable assessment of this construct, offering an alternative methodology to evaluate the integrity of corporate communications vis-à-vis actual organizational action in crisis contexts. Our findings about the boundary conditions of the corporate honesty effect contributes to a nuanced understanding of the phenomenon within the domain of sociopolitical corporate activism, ethical business practices, and international market dynamics.

Exploring the relationship between taxpayers and tax authorities in the digital era: evidence on tax compliance behavior in emerging economies

Purpose This study aims to understand the determinants of the relationship between tax authorities and taxpayers in the digital era and how this relationship impacts tax compliance behavior, especially in the context of emerging countries like Morocco. Design/methodology/approach A qualitative methodology was adopted, involving interviews with tax inspectors and auditors, certified accountants’ experts and tax consultants. Data analysis was conducted using IRAMUTEQ software. Findings The research highlights that the relationship's quality and the level of mutual trust between tax authorities and taxpayers are critical in determining tax compliance in the digital era. Central factors affecting this relationship encompass effective communication, simplification of tax procedures, clarity of tax laws and the digitization of tax services. Furthermore, the study emphasizes that these dynamics and determinants significantly influence the tax compliance behavior of taxpayers in Morocco, revealing intricate connections between relational aspects and compliance attitudes. Practical implications The findings suggest that fostering a mutually trusting relationship, through improved communication, simplification and digitization, can enhance taxpayer compliance. This is valuable for policymakers and tax authorities developing strategies to improve tax systems in emerging countries. Originality/value This study contributes to the sparse literature on the relationship between tax authorities and taxpayers in the and digital era, offering new insights into factors that influence tax compliance in the post COVID-19 crisis context. Its practical recommendations provide a foundation for developing strategies aimed at improving this relationship and, consequently, taxpayer compliance behavior in emerging countries.

Functions of public control in reforming the tax system and improving the activities of the State Tax Service of Ukraine

Functions of public control in reforming the tax system and improving the activities of the State Tax Service of Ukraine

Storm in the Cloud: A Study on the Macroeconomic Impact of the UK’s Digital Service Tax

The nature of the digital economy puts pressure on traditional tax practices, as it is frequently characterised by high returns from intangibles. In this paper, we assess the macroeconomic impact of the digital services tax introduced in the UK in 2020. We employ the CORTAX model, which is a macroeconomic model elaborated for the Member States of the European Union, the UK, the US, and Japan. The model strongly focuses on corporate taxation and multinational firms. To be able to represent the digital sector, a major extension of the model has been introduced to expand the model from one sector to two, allowing the digital sector to be modelled separately from the rest of the productive economy. The results suggest a negative impact on GDP from the introduction of the tax but a gain in welfare and consumption for the UK and small positive spillovers for close trading partners.

GST: A Catalyst or Constraint for Indian Economic Growth?

Goods and Services Tax (GST) is a comprehensive indirect tax system designed to streamline taxation and boost economic growth. Over 150 nations have successfully implemented GST. In India, the concept was introduced in 2000 by the Vajpayee government. While the Lok Sabha approved the constitutional amendment for GST in 2015, its implementation has been met with significant opposition. This paper aims to explore the potential negative impacts of GST on the Indian economy and analyze the reasons behind the widespread resistance to its adoption.

TAX BUOYANCY IN MAJOR STATES IN INDIA

In the world of fiscal policy, tax elasticity and buoyancy are crucial factors shaping a country's financial health. Tax elasticity measures how much tax revenue changes when national income shifts, showing how flexible the tax system is naturally, without deliberate policy changes. This flexibility helps stabilize revenue, reducing the need for constant tweaking of tax policies. On the other hand, tax buoyancy reflects how tax revenue responds to economic shifts and intentional changes in tax policies. It acts like a gauge, indicating how effectively taxes adjust to economic ups and downs and how well policy decisions influence revenue. Low buoyancy suggests that there might be flaws in the tax system, prompting policymakers to rethink and improve tax strategies to better fit economic realities. For a country like India, where tax revenues are essential for financing public spending, understanding these metrics is critical. The buoyancy coefficient compares the growth of actual tax revenue to national income growth, providing insights into how successful fiscal policies are in boosting tax revenues. Meanwhile, the elasticity coefficient shows how responsive the tax system is to changes in national income, revealing its potential to generate more revenue as the economy grows. Analyzing these metrics gives policymakers a detailed view of fiscal sustainability and economic stability. It helps them make informed decisions when designing tax policies, ensuring that the government can maximize revenue while allowing the tax system to adapt smoothly to economic changes. A balanced approach that considers both elasticity and buoyancy is key for India's fiscal strategy, ensuring a well-coordinated financial performance that aligns with national economic goals. KEYWORDS :- Tax Buoyancy, Tax Elasticity, Fiscal Policy, Tax Revenue, NITI Aayog, RBI (Reserve Bank of India), VAT (Value Added Tax), GST (Goods and Services Tax).

Multiple shared mobility services under competition: Empirical evidence for public acceptance and policy insights to sustainable transport

Traffic congestion and roadside emissions are severe and common problems in metropolitans. As a promising and sustainable solution to mitigating these vehicle externalities, shared mobility reduces the required vehicle fleet size for serving a given level of demand by sharing a vehicle among travelers with similar schedules and itineraries. Public acceptance is the key to the success of shared mobility development. This study investigates the acceptance of drivers and passengers of two typical competing shared mobility modes, car-pooling and taxi ride sharing, taking Hong Kong as a case study. For an empirical evaluation, an on-street stated preference survey was conducted, and 829 respondents, including 257 private car owners and 572 non-private car owners were interviewed about their travel preferences in three given hypothetical scenarios. In total, 2,487 observations were collected for calibrating two proposed logit-based discrete choice models for drivers and passengers. The model results show that the out-of-pocket cost, in-vehicle travel time, and out-of-vehicle time are key factors influencing travelers’ decisions toward car-pooling and taxi ride-sharing. An equilibrium model was proposed and an iteration solution procedure was applied to obtain a convergent solution to balance the demand and supply of drivers and passengers for car-pooling services. Furthermore, sensitivity analyses were carried out to examine the effects of variations in proportions of travel cost and taxi fare shared by passengers for car-pooling and taxi ride-sharing, and to assist in the formulation of relevant transport policies.

Analisis Persepsi Karyawan Pada Penerapan Undang-Undang Nomor 7 Tahun 2021 Tentang Harmoni Sasi Peraturan Perpajakan (Studi Persepsi Karyawan WNJ.ID tentang Penggunaan Nomor Induk Kependudukan (NIK) Sebagai Nomor Pokok Wajib Pajak (NPWP))

Tax, which is defined as a contribution to the state that can be enforced through law, has two functions, namely the budgetary function and the regular function. As a budgetary function, taxes act as a source of state revenue, which can then be used to finance state activities. Therefore, the size of the tax that can be collected has very important implications for the number and quality of activities that can be carried out by the state. The tax ratio in Indonesia is low because Indonesian citizens are less aware of registering with the Tax Service Office (KPP) and obtaining a Taxpayer Identification Number (NPWP), so that there are many economic activities that should be tax objects but are difficult or cannot be detected by the tax authorities. The growing shadow economy activities can cause state losses, because shadow economy actors are generally separated from the tax authorities, thus eliminating the obligation to pay taxes. The taxation system in Indonesia which is self-assessment in nature encourages taxpayers to have self-awareness to report and pay their tax obligations in their role and support state revenues in order to achieve the common welfare of the people. To report and pay tax obligations, taxpayers must have a Taxpayer Identification Number (NPWP) as tax identity. Taxpayer Identification Number (NPWP) is a number given to taxpayers as a means in tax administration which is used as personal identification or Taxpayer identity in carrying out their tax rights and obligations, Taxpayer Identification Number (NPWP) is a means in tax administration which used as personal identification or taxpayer identity, each taxpayer is only given one taxpayer identification number. Taxpayer identification numbers are also used to maintain order in tax payments and in supervising tax administration, so that taxpayers' Taxpayer Identification Numbers (NPWP) obtain several other direct benefits, such as paying taxes in advance (installments\tax credits) on external taxes. paid when the taxpayer goes abroad, as a requirement when processing a trading business permit (SIUP), and as one of the conditions for creating a checking account at banks, taxpayers who do not register to obtain a taxpayer identification number are subject to witnesses in accordance with the provisions of tax laws and regulations. The survey results show that respondents have a positive perception regarding the benefits of the policy of integrating Population Identification Numbers (NIK) into Taxpayer Identification Numbers (NPWP) in increasing efficiency and ease in processing tax documents, verifying identity, the number of documents that need to be prepared, and access to services. online tax.

Influence Tax Knowledge, Taxpayer Awareness, Quality Services and Sanctions Taxation to Taxpayer Compliance

This research aims to determine the influence of tax knowledge, taxpayer awareness, service quality and tax sanctions on individual taxpayer compliance. This research was conducted at Madiun State Polytechnic. This type of research is quantitative research. This research uses the Slovin formula to determine the sample size of 85 individual taxpayers at the Madiun State Polytechnic, using a purposive sampling method. The analysis technique used is multiple linear regression. The research results show that tax knowledge and service quality have a positive effect on taxpayer compliance because the higher the level of knowledge and quality of tax services, the easier it is for taxpayers to understand tax regulations and fulfill their tax obligations. Taxpayer awareness does not affect taxpayer compliance because the increase in incidents that frequently occur, especially in the taxation sector, means that taxpayers do not want the taxes they pay to be misused by the tax authorities themselves, so that taxpayer compliance does not increase. Tax sanctions have no effect on mandatory tax compliance because there is still a lack of public awareness of the importance of taxes for smooth development which affects individual taxpayer compliance does not increase.

Mechanism of Application for Overbooking Via E-Pbk for Errors in Filling in E-Billing Data at the Pratama Tax Service Office xxx

Mechanism of Application for Overbooking Via E-Pbk for Errors in Filling in E-Billing Data at the Pratama Tax Service Office xxx

Taxation Models and Improvement Proposals for Personal Income Tax in the Sharing Economy

As an innovative economic model, the sharing economy has seen rapid growth globally in recent years. It has not only brought a profound impact on traditional economies but also injected new vitality and momentum into the sustainable development of the social economy. However, for the sharing economy, the process of collecting personal income tax is facing several issues, such as the ambiguity of tax policies regarding personal income, challenges in identifying taxpayers, and difficulties in defining income. To achieve the fairness and efficiency of personal income tax collection in the sharing economy, this study proposes optimized regulatory mechanisms and conducts in-depth discussions on the adjustment of personal income tax policies, innovation in tax management technology, and improvement in the quality of personal income tax services.

PENGARUH PENERAPAN PMK-59/PMK.03/2022 TERHADAP PENERIMAAN PPN PADA KPP PRATAMA KEBAYORAN BARU SATU

The aim of writing this scientific work is to research and evaluate the impact of the implementation of the Republic of Indonesia Minister of Finance Regulation (PMK) Number 59/PMK.03/2022 on domestic Value Added Tax revenues in government agencies in the working area of ​​the Jakarta Kebayoran Baru Satu Primary Tax Service Office. The research population included 194 taxpayers (WP) of government agencies located in the working area of ​​KPP Pratama Jakarta Kebayoran Baru Satu, including Senayan Subdistrict with 46 WPs, Petogogan Subdistrict 30 WPs, Selong Subdistrict 105 WPs, Rawa Barat Subdistrict 2 WPs, and Gunung Gunung Subdistrict as many as 11 WP. The data source used in the research is primary data known from the State Revenue Module of the Jakarta Kebayoran Baru Satu Primary Tax Service Office. The research method used is a quantitative approach with descriptive methods. The results of the research show that the implementation of PMK-59/PMK.03/2022 has a positive impact on domestic Value Added Tax revenues in government agencies.

Tax administration of digital economy: Concepts, problems and directions of development

The article argues that the international business landscape has changed due to advances in information and communication technologies (ICT), which have led to digital transformation in all sectors of the economy. These processes have required legislators to urgently adapt traditional taxation methods to the digital economy. The author considers the concept of digital economy, its implications for tax systems. An attempt is made to analyze the main problems in the context of tax administration of the digital economy. According to the author, the current rules governing international taxation are designed to apply to enterprises physically present in the country and are not suitable for “digital” companies that do not have an identifiable physical presence in the states in which they conduct economic activities. The current proposed solutions to tax problems are analyzed: the concept of the Organization for Economic Cooperation and Development (OECD) within the framework of work on BEPS, unilateral introduction of digital service tax by countries or application of indirect taxes (VAT, WHT, etc.), the concept of “profit sharing”, changing the definition of permanent establishment by creating a new concept of “virtual (digital) permanent establishment”. It is concluded that the first component of the OECD concept and amending bilateral international tax conventions to include the definition of digital representation seem to be the most promising development options.

Improving Sustainable Financing for Universal Health Coverage in Bhutan: Exploring Policy Options and Financial Strategies

AbstractDeeply rooted in its developmental philosophy of gross national happiness (GNH), Bhutan's healthcare system strives towards achieving a shared goal of universal health coverage (UHC). Despite being primarily financed by the government, the health system faces a plethora of challenges. To overcome these hurdles and achieve UHC goals, expanding the fiscal space for health and improving operational efficiency are crucial. This article aims to address Bhutan's evolving healthcare landscape and advance the achievement of UHC through two policy options. The first policy option focuses on the dual objective of improving health outcomes and promoting financial sustainability by leveraging health taxes, whereas the second option emphasizes reinforcing a systematic health technology assessment (HTA) in the Bhutanese health system. First, drawing lessons from global experiences, the policy brief recommends leveraging health taxes to reduce societal and healthcare costs and enhance financial sustainability in the health sector. Considering Bhutan's high prevalence of tobacco and alcohol consumption, and taking opportunity from the ongoing Goods and Services Tax (GST) reform, continued advocacy on health taxes is essential, and soft earmarking the health taxes may be considered to finance a broader array of public health programmes, particularly focusing on the promotion of healthy lifestyle, health screening and outreach public health activities. Second, the integration of HTA into policymaking and decision‐making processes is essential for effective resource allocation in UHC. Nurturing and strengthening the existing HTA governance structure under the Ministry of Health (MoH) and establishing a dedicated multidisciplinary HTA Committee will ensure informed decision‐making and resource optimization. HTA evidence should inform the revision of health service standards, clinical guidelines development, procurement decisions and healthcare priorities. These policy options can assist the country in improving financial sustainability, enhancing effective resource allocation and utilization and improving healthcare delivery, aligning with its vision of GNH and ultimately accelerating progress towards achieving UHC.