Services Tax Research Articles

The impact of local taxes and fees on the financial sustainability of territorial communities in times of war

The paper analyses the impact of local taxes and fees on the financial sustainability of territorial communities. The concept of financial sustainability is considered in relation to financial management, investment planning and debt control. It is noted that in the context of finance, the concept of ‘financial sustainability’ is identified with stability, security and flexibility. The author also analyses the share of local taxes and fees in the tax and total revenues of local budgets of Ukraine for the period 2021-2023. In turn, this allowed us to highlight changes in the structure of local budget revenues, in particular, changes in tax revenues and their relative contribution to total revenues. The calculated coefficients were used to highlight the role of local taxes and fees in ensuring financial sustainability on the example of the budget of the Lviv territorial community. The values of key financial indicators that characterise the level of financial sustainability of the budget of the Lviv city territorial community for the period 2021-2023 are also investigated. Using tables, the author analysed the coefficients such as the coefficient of independence, budget coverage, tax independence, budget security, subsidy and withdrawal of funds to the state budget. Fluctuations in these indicators over three years and their impact on the financial sustainability of local budgets in times of war were studied, i.e., the current state of the system of local taxes and fees was demonstrated. An important aspect of the study was the impact of the military conflict on the local taxation system in Ukraine, as in the context of the war in the country, it was necessary to consider not only the threat to security and stability, but also the economic consequences that significantly affect the financial support of local communities. Particular attention was paid to the efficient allocation of financial resources and the creation of reserve funds to ensure financial stability in unforeseen circumstances. The importance of local taxes as a key mechanism for strengthening the financial base and stability of territorial communities is highlighted, as this aspect contributes to their development and improves the quality of life of residents.

Goods and Services Tax in Singapore – A Reflection on 30 Years

It has been 30 years since GST was introduced in Singapore. In this Column, the author explains the features of the system that are good in terms of its fairness, equity, administrative ease, efficiency and certainty, and where Singapore can do better.

Assessing Individual Taxpayer Compliance: Does Service Quality Moderate Tax Knowledge and Tax Penalties?

The objective of this study is to assess the impact of tax knowledge and tax penalties on the compliance of individual taxpayers, with service quality acting as a moderating variable, at the Mulyorejo Pratama Tax Service Office. The study population consisted of all individual taxpayers who were registered at the Surabaya Mulyorejo Pratama Tax Office. The study utilized a sample of 100 respondents from a population of 47,115 personal taxpayers. The sample was drawn from the Surabaya Mulyorejo Pratama Tax Service Office in 2018. The questionnaires are distributed using the incidental sampling technique. The data collection in this study was carried out utilizing a questionnaire. The study employed the Partial Least Square (PLS) analytic technique, utilizing the warpPLS 6.0 program. The findings indicated that having knowledge about taxation had a positive impact on personal taxpayer compliance. However, the imposition of taxation penalties did not have any effect on personal taxpayer compliance. Additionally, the moderation of service quality was unable to influence the relationship between tax knowledge and personal taxpayer compliance. However, it was found that service quality moderation had a significant effect. It diminished the impact of tax penalties on the compliance of individual taxpayers.

The Impact of Islamic Economics Principles on the Tax Compliance Payment Entertainment Policy

Surakarta City Government has established various entertainment tax rate policies; however, entertainment taxpayers must still comply with these policies. This research examines and analyzes the impact of Islamic economics principles on the tax compliance payment entertainment policy. This research is normative research equipped with interviews. This research uses descriptive secondary data. The research results show that, first, the level of tax compliance in paying massage parlor and SPA entertainment taxes in Surakarta City differs from Islamic economics principles. At the same time, the causal factor is the minimal participation of taxpayers in formulating entertainment tax rate policies. Second, the Surkarta City government has a role in increasing tax compliance in massage parlors. SPA Entertainment is maximizing the imposition of sanctions, supervision, outreach, and providing applications that make tax services easier.

A field research on Accommodation Tax

Law No. 7194, Digital Service Tax and Certain Laws and Law No. 375 on the Turkish Tax System With the Law on the Amendment of the Decree Law, a new tax calculated on the cost of accommodation services was introduced. The impact of the Accommodation Tax, which has been in practice for a short period, on citizens is essential. On 01.01.2023, 1,020 people were surveyed to obtain their opinions on the Accommodation Tax that was put into effect. It is seen that some of the demographic and preferential characteristics of the respondents in terms of gender, age, marital status, educational status, occupational status, number of annual vacations, accommodation preferences and income status differ significantly within themselves. In contrast, their opinions on the Accommodation Tax do not differ in some variables.

A tributação do serviço de advocacia em bases fixas: de acordo com a jurisprudência, a legislação de Fortaleza e a reforma tributária

Analysis on whether lawyers would have the right to different taxation on a fixed basis, as for Tax on Services (ISS) of any kind, as well as what are the requirements, according to the understanding rendered by the Supreme Federal Court (STF), and if this taxation will continue, despite the tax reform (Constitutional Amendment number 132 of 2023), in which the ISS will be exchanged by the Goods and Services Tax (IBS), within the jurisdiction of the state. The exploratory methodology was used through bibliographical and documental research about the ISS, with the analysis of pertinent legislation, STF’s and Superior Court of Justice’s (STJ) case law, along with the tax reform text. The STF has defined, in a general repercussion, that it is unconstitutional for the municipal law to deter the submission of law firms to fixed taxation in the format required by national legislation. Consequently, the municipal legislation of Fortaleza, which foresees the non-characterization of professional law firms once these have the help of lawyers, in general, or in part, of their core activity services, is unconstitutional. This way of verifying the quantitative criteria is extinct with tax reform as of 2033, because this form of favorable taxation makes no sense in the digital economy age, but allows reduced aliquots concerning IBS.

Does Service Quality, Digitalization of Tax Services, Understanding, and Taxpayer Awareness Effects on Hotel Taxpayer Compliance?

Taxpayer compliance is an obedient and obedient attitude carried out by taxpayers in fulfilling tax responsibilities in accordance with applicable regulations. This research aims to determine the effect of service quality, digitization of tax services, understanding and awareness of taxpayers on hotel taxpayer compliance at the Badung Regency Regional Revenue Agency. This research is based on Attribution Theory and uses a purposive sampling technique to determine the sample. The sample in this research were 184 respondents. Technical analysis data of this research uses multiple linear regression analysis. The results of this research indicate that service quality, digitalization of tax services, tax understanding, and taxpayer awareness have a positive effect on taxpayer compliance

Financial Technology for the Sustainable Development

The Sustainable Development Goals (SDGs) are the critical goals for every country in the world. A stable global financial system is needed these days to satisfy its duty to boost private capital mobilization to achieve sustainable development and steady economic growth. However, several obstacles limiting such financial mobilization have been identified by scholars, practitioners, and standard setters. In recent times digital transformation and advancement, specifically in the finance sector, include a wide range of technological developments, and applications such as blockchain, the Internet of things, big data, and artificial intelligence are promised to enhance performance in the financial sector. The potential of digital applications in the finance sector to resolve critical obstacles in financing for inclusive and sustainable growth becomes evident. Financial inclusion is indisputably one of the most significant processes towards achieving the Sustainable Development Goals and FinTech is one of the best methods for these goals to be accomplished. The Fintech industry in India is rapidly expanding and the purpose of this paper is to discuss issues such as fintech drivers, shortcomings of traditional financial services, and the role of technological advancement. The paper also addresses issues relating to fintech investment and disturbance. Financial technology faces challenges such as investment management, customer management, and regulation. The paper examines the evolution of fintech in the banking sector over time. But as we are aware a country like India lacks proper infrastructure and management and the objectives of banking can’t not be attained easily. All the issues and challenges faced by the government and financial institutions have been discussed in this paper along with the important and different strategies adopted by them. The study is based on secondary data and a literature review. India has surpassed the global fintech adoption rate to promote financial transactions with the help of technology. Demonetisation and implementation of the GST (goods and services tax) have also played a major role in the adoption of financial technologies among the masses. Also, the announcement made by the government in 2017 to decrease the amount of paper currency in circulation has elevated its awareness. Blockchain is another financial technology that is being used in the industry. Out of the total “fintech” technologies, blockchain was developed for finance which is directly connected to financial institutions. The main aim of Blockchain in financial services is decentralization where we do not trust a third party to execute transactions. It includes services such as transferring funds between banks and companies. While trading in capital markets, innovative electronic trading platforms facilitate online trade and real-time transfers. Trading networks allow investors to observe the trading behavior of their peers and expert traders and to follow their investment strategies on currency exchange and capital markets. These platforms require either very little or no knowledge about financial markets. An automated financial advisor provides financial advice or online investment management with moderate minimal human intervention.

Taxpayer Compliance of MSME: The Role of Tax Knowledge, Tax Office Service Quality, and Trust in the Government

This research aims to determine the influence of the role of tax knowledge, tax service quality, and trust in the government on Kemayoran District MSME taxpayer compliance. The method used in this research is the data collection method through a questionnaire which is measured using a Likert scale. The sampling method uses a purposive sampling technique with the criteria of MSME actors in the Kemayoran District area and those who have an income of >500 million per year. This research is quantitative research. The results of this research state that knowledge of taxation influences the compliance of Kemayoran District MSME taxpayers, the quality of tax service does not influence the compliance of Kemayoran District MSME taxpayers, and trust in the government does not influence the compliance of Kemayoran District MSME taxpayers.

The Impact of Transfer Pricing, Capital Intensity, Thin Capitalization on Tax Avoidance with Sales Growth as Moderating Variabel in Pharmaceutical and Health Companies Listed on Indonesia Stock Exchange 2017-2022

In Indonesia, current tax regulations aim to address these practices through rules like transfer pricing, restrictions on interest deductions on loans from affiliated companies (thin capitalization rules), and asset depreciation rules. However, companies often seek loopholes or new strategies to reduce their tax obligations. This study aims to evaluate the impact of transfer pricing, capital intensity, and thin capitalization on tax avoidance practices in the health and pharmaceutical sector in Indonesia. This is particularly relevant as health sector companies listed on the Indonesia Stock Exchange saw an average revenue increase of 6% during the overall economic downturn caused by the Covid-19 pandemic, reflecting the growing public awareness of health importance and efforts to maintain health during the pandemic. The data for this study is obtained from the financial statements of health and pharmaceutical sector companies listed on the Indonesia Stock Exchange from 2017 to 2022, selected through purposive sampling, with a total of 132 observations sourced from www.idx.co.id. The analysis method used was panel data regression analysis, with Gross Profit Margin (TA_GM) used as a proxy. The results show that transfer pricing, capital intensity, and thin capitalization have a positive impact on tax avoidance. However, sales growth does not enhance the influence of these independent variables on tax avoidance. These findings are expected to assist the Tax and Financial Services Authority in enhancing regulations related to tax avoidance in Indonesia, aligning with the reduction of tax avoidance practices in the health and pharmaceutical sector, and increasing state tax revenues.

Factors Influencing Electronic Tax Compliance Of Small and Medium-Sized Enterprises in Northern of Vietnam

The electronic tax service system - eTax in Vietnam is implemented as an administrative reform initiative of the tax industry to improve efficiency of the tax authorities. This research therefore sets out to examine the variables that impact firms’ compliance levels in the context of adopting electronic tax with a model that tests linear relationship between identified factors and tax compliance. Research data serving the study were collected from July to October 2023 from respondents working for small and medium-sized enterprises (SMEs) in Northern Vietnam with 200 valid questionnaires. Research findings reveal a positive relationship between The level of electronic tax application (AE), Tax policy - tax inspection & examination (TPTI) and The level of tax compliance (TC). Moreover, the level of adoption of electronic tax is positively influenced by Perceived ease of use (PEOU), Perceived usefulness (PU) and Information techonology skills (IT). Based on the research results, the study proposes appropriate recommendations to enhance the management mechanism and improve the tax compliance level of the SMEs in Northern Vietnam.

Budget Implementation as a Work Control Tool Work at the Mulyorejo Pratama Tax Service Office

Budget Implementation as a Work Control Tool Work at the Mulyorejo Pratama Tax Service Office

The impact of factor tax structure on firm innovation: evidence from China

ABSTRACT Labor and capital are two of the most fundamental factors of production, and the ratio of labor to capital tax can reflect the structure of factor tax. Despite the existing literature demonstrating the impact of taxation on enterprise innovation, few studies have addressed the effect of changes in factor tax structure on enterprise innovation. Using provincial tax data and listed company data from China between 2006 and 2017, this study empirically tests the impact of factor tax structure on enterprise innovation using the Poisson quasi-linear method. The findings indicate that a higher share of labor tax and a lower share of capital tax tend to inhibit enterprise innovation. Conversely, a higher tax compliance rate for labor tax and a lower compliance rate for capital tax are also unfavorable to enterprise innovation. A non-linear relationship is observed between factor tax structure and enterprise innovation, where a higher share of labor tax and a lower share of capital tax can promote enterprise innovation when exceeding a specific limit. The results of this study have theoretical and practical implications for improving factor tax structure, stimulating enterprise innovation, and promoting economic transformation toward higher quality.

Impact of Goods and Services Tax implementation on Hotel Industry: Perception of Accounting Professionals

Impact of Goods and Services Tax implementation on Hotel Industry: Perception of Accounting Professionals

Do public disclosures of investments in tax planning attract monitoring by tax authorities?

Given the returns to investments in tax planning documented by prior studies, we predict that disclosures of investments in tax planning required by the SEC could inform tax authorities about the benefits of examining particular firms. Consistent with this notion, we find that the amount of tax non-audit services fees a firm reports in the current year is significantly associated with multiple measures of tax authority monitoring over the subsequent years. This result is stronger among firms with greater bargaining power who may be able to demand more aggressive tax planning advice from their auditors. Additionally, we find that our results are concentrated within non-audit fees related to tax planning, rather than tax compliance. Our findings contribute to research on tax enforcement and auditor-provided tax services, and have practical implications for firms considering purchasing tax services from their auditors and corporate stakeholders assessing firms’ potential exposure to tax enforcement. Further, our study has public policy implications by providing evidence of an unintended consequence of SEC disclosure requirements.

Effect of GST on the FMCG Sectors Profitability Position

By comparing the financial data from the three different periods, the study aims to identify any changes or trends that may have occurred in the companies' financial performance following the implementation of GST. This analysis can provide insights into how the implementation of GST has affected businesses in different sectors and can help identify areas where further reforms may be necessary. Overall, this study gives a thorough examination of how the GST has affected the financial results of fifteen Indian corporations. The research intends to offer insights into the short- and long-term effects of GST on firms in various industries by evaluating the data gathered for the pre-GST, post-GST, and present periods. Policymakers, academics, and corporate executives may find the study's conclusions interesting since they offer insightful information on the financial implications of the GST's implementation. A paired t-test can be used to determine if total income before and after the introduction of GST differed significantly. For this test, the null hypothesis (Ho) is that there is no discernible change in total income before and after the introduction of the Goods and Services Tax (GST).

The Influence of Educational Level, Tax Understanding, and Tax Awareness on Individual Taxpayer Compliance

This research aims to analyze the influence of education level, tax understanding and tax awareness on tax compliance of individual taxpayers registered at the Cilacap Primary Tax Service Office. This research uses quantitative methods with an associative approach. The number of samples used in this research was 100 respondents. The sampling technique used is the purposive sampling method using the Slovin formula. Data were collected using the questionnaire method and processed using SPSS statistics version 24. The data analysis technique used was multiple linear regression. The results of the F test show that the level of education, tax understanding and perceived tax awareness simultaneously have a significant effect on individual taxpayer compliance. The results of the t test show that partially, education level, tax understanding and tax awareness have a positive effect on individual taxpayer compliance.

An Empirical Study on Impact of Goods and Services Tax (GST) on Customers’ Perception in Rajkot District

An Empirical Study on Impact of Goods and Services Tax (GST) on Customers’ Perception in Rajkot District

Analisis Faktor-Faktor Yang Mempengaruhi Kepatuhan Wajib Pajak Badan Pelaku UMKM Dalam Melaksanakan Kewajiban Perpajakan Di Era New Normal (Studi Kasus Wajib Pajak Badan Pelaku UMKM Kota Denpasar)

MSME taxpayer is a source of state income which makes a large contribution to the Indonesian economy.This study aims to determine the effect of taxpayer awareness, tax socialization, tax rates, tax sanctions, and service quality on the compliance of MSME taxpayers in Denpasar City in the new normal era. The population in this study were all MSME taxpayers registered at KPP Pratama West Denpasar and KPP Pratama East Denpasar. Sample determination using the G-Power application with proportional stratified random sampling technique. The number of samples used was 138 MSME taxpayers registered at KPP Pratama West Denpasar and KPP Pratama East Denpasar. The analysis technique used in this research is multiple linear regression analysis. The results of this study indicate that tax awareness, tax socialization, tax sanctions and tax service quality have a positive effect on taxpayer compliance, while tax rates have no effect on taxpayer compliance.

Does Tax Sharing Matter for Export Quality Upgrading? Evidence from China

Tax policy is critical for business operations and export decisions. However, the relationship between tax sharing and export has been less frequently discussed. This paper explicitly examines the underexplored tax-sharing system’s effect on manufacturing exporters’ export quality and develops four hypotheses. We use data on Chinese manufacturing exporters and prefecture-level tax-sharing from 2008 to 2013 and employ an instrumental variable approach to alleviate the endogeneity problem. The empirical evidence supports our hypotheses. We find that an increase in the prefecture-level government tax-sharing ratio significantly reduces export product quality of firms. This quality effect can occur through channels, including tax burden effect, production scale effect, and innovation effect. Moreover, more productive firms and those operated in cities with stronger intellectual property protection can face a smaller quality-reducing effect. Our findings offer policy implications for improving China’s modernized tax system and trade upgrading. Policymakers should recalibrate the tax-sharing system to reduce the tax burden on manufacturing exporters, particularly for innovative and high-productivity firms, and bolster intellectual property rights to enhance export quality and support China’s trade and economic modernization.