Transaction Tax Research Articles

DESIGN OF CRYPTOCURRENCY INVESTMENT TRANSACTION MODEL AS AN EFFORT TO INCREASE STATE REVENUE THROUGH DIGITAL ASSET INSTRUMENT RATES AND TAXES IN INDONESIA

This research will discuss the design of cryptocurrency transaction models as an effort to increase state income. The main factor that must be met in order to be legal in Indonesia is special regulations related to cryptocurrency. Developing special regulations related to cryptocurrency is actually an important step for the Indonesian state. For example, in developed countries such as the United States, Japan and Singapore, tax regulations related to cryptocurrency have been prepared. Especially at this time, technological developments, especially digital or virtual systems, are very rapid. So it can be predicted that various new virtual currencies that are similar or even more sophisticated and more complex than the ones that exist today will continue to emerge in the future. Determining the basis for tax levies for Cryptocurrency digital assets needs to be done based on the virtual currency units or also based on their value when converted to foreign currency such as rupiah or USD. Apart from that, it is also necessary to classify the type of tax that will be imposed on Cryptocurrency, whether it will be the object of income tax (PPh 21), profit income tax on exchange rate differences or income tax on capital gains (PPh article 4 paragraph 2) or VAT. This research actually started with attention to the many demands from Bitcoin users in Indonesia who wanted to have legal protection rights in the cryptocurrency transaction process, because in several other countries such as Singapore Bitcoin has become a legal financial investment option and is regulated and supervised by the government and the State Financial Authority. the. So the researcher intends to study in more depth how the Cryptocurrency transaction system can be supervised and controlled by the government, so that later a "Legal Cryptocurrency" Regulation can emerge with a "Digital Asset Transaction Tax" quotation system to be able to accommodate several interests of the Indonesian public and government.

Possibilities of the Introduction of a Financial Transaction Tax in Germany: Comparison and Evaluation on the Basis of the Italian and French Transaction Tax With Regard of the EU Taxation Principles

This article evaluates the financial and economic implications of implementing a stock financial transaction tax (FTT) in Germany, setting aside the political dimensions prevalent in European discussions. It finds that an FTT decreases market efficiency and does not aid in stabilizing the financial system. Observations from France and Italy, where FTTs yielded revenues below projections, suggest that such a tax might be economically unfeasible for Germany. The study investigates whether a national FTT targeting transactions of German company shares on domestic exchanges—and levying the tax on the purchaser—conflicts with European Union principles, especially the free movement of capital as stated in Articles 63-65 of the Treaty on the Functioning of the European Union (TFEU). Moreover, it scrutinizes the compatibility of the proposed Franco-German cooperative FTT with German constitutional law and whether the financial sector’s contribution to the public good justifies the tax base under the Basic Law’s tax typology.

E-Commerce Taxation Challenges and Opportunities: From Clicks to Conversions in Fast-Moving Consumer Goods

The modern world is becoming more and more technologically advanced, and people spend more time working, so there is no time left to do classic shopping in standard stores and supermarkets, but there are opportunities to purchase various goods and services online. This state of affairs is the reason why e-commerce has emerged and is actively developing. Today, e-commerce is no longer just online sales, but a complete system of doing business without classic offices and conservative stores. In recent years, e-commerce has been actively promoted in the service sector, including financial services. Such active development of this area leads to the need to pay special attention to the taxation of transactions involving the electronic sale of goods and services. With this in mind, the purpose of the article is to determine the specifics of the development and peculiarities of taxation of e-commerce transactions. As a result of the study and achievement of the objective of the work, the author has obtained a result which indicates that, in general, e-commerce transactions are taxed under standard taxation schemes, although there are peculiarities of accounting for electronic money and taking into account the fact of transfer of ownership of the product. In general, it is proved that e-commerce has great prospects and will gain more and more market shares of goods and services for various purposes.

Business ownership and the secondary market

I combine survey and transaction data to empirically characterize secondary markets for wholly owned businesses in the United States. While markets are active, with an estimated 2.9% of businesses sold annually, they are also frictional, with the median sale taking between 170 and 200 days. To quantify the impact of market frictions on business formation, ownership, continuation, and entrepreneurial welfare, I estimate a search and matching model of business ownership and resale using novel data from an online market. In the estimated model, removing secondary markets reduces output by almost 21%, while firm entry rates rise by 2.5 percentage points, highlighting a trade-off between firm entry and continuation that is absent in models without resale. I then characterize the planner's problem and show that buying and selling decisions will generally never be simultaneously efficient. A transaction tax used to finance a minimum income scheme for entrepreneurs raises welfare by 0.94%. Finally, I extend the model to include founding risk and find the risky economy is five times more responsive to frictions relative to the benchmark economy.

Noise traders in an agent-based artificial stock market

AbstractThis paper investigates whether noise traders can survive in the long run and how they influence financial markets by proposing an agent-based artificial stock market, as one simulation model of computational economics. This market contains noise traders, informed and uninformed traders. Informed and uninformed traders can learn from information by using Genetic Programming, while noise traders cannot. The system is first calibrated to real financial markets by replicating several stylized facts. We find that noise traders cannot survive or they just transform to other kind of traders in the long run, and they increase market volatility, price distortion, noise trader risk, and trading volume in the market. However, regulation intervention, e.g., price limits, transaction tax and longer settlement cycle, can affect noise trader’s surviving period and their influence on markets.

IMPROVEMENT OF METHODOLOGICAL PROVISION OF ECONOMIC EXPERTISE OF ACCOUNTING PROCEDURES REGARDING FINANCIAL INSTRUMENTS

The article is devoted to the generalization of approaches and key aspects of economic expertise of accounting, assessment and taxation of transactions with financial instruments. Based on expert practice, the questions that are most often put before experts by the bodies of preliminary investigation and the court during the investigation are summarized, and the methodology for solving questions of the correctness of financial instruments in the accounting by economic expertise is summarized. Methodical approaches to the economic expertise of accounting issues and valuation of financial instruments have been determined, including identification and generalization of typical offences, standardization of the tools for checking the reliability of accounting data, and methods of expert verification of indicators of the fair value of financial instruments in accounting. The peculiarities of the application of the specified methods in the practice of expert activity have been revealed, which will allow optimizing expert research and contribute to strengthening the reliability of the cost presentation of financial instruments in reporting. The methods for resolving the issues of the correctness of reflection in the accounting of financial instruments by forensic economic expertise were developed to cover and disclose the key aspects of the expertise of accounting, valuation, and taxation of transactions with financial instruments. It presents methodical approaches to the forensic economic expertise of accounting and valuation of financial instruments, including identification and generalization of typical offences, standardization of tools for verifying the accuracy of accounting data, and methods of expert verification of the fair value of financial instruments in accounting. Its application in the practice of expert activities will optimize expert research in this area and will help strengthen the reliability of the value of financial instruments in the reporting.

Securities transaction taxes and stock price informativeness: evidence for France and Italy

This empirical study addresses the impact of securities transaction taxes (STTs) on price informativeness. Two specific events are assessed: the entry into force of STTs in France and Italy in 2012 and 2013, respectively. Specifically, it is gauged whether those events produced effects on the future earnings response coefficient (FERC)—a proxy for the capacity of investors to anticipate future earnings—of the stocks eligible for the STT. Our findings indicate that the new taxes on securities transactions that entered into force in France and Italy were neutral with respect to the effects on price informativeness. That is, no material changes in the FERC of affected stocks are detected in the aftermath of the STTs’ entry into force. This result applies when considering the events in France and Italy separately, and when analyzing different subsets of the sample based on the size, trading activity, and liquidity of the stocks.

가상자산에 대한 소득세 부과 방안 연구

Looking at the legal status of virtual assets in Korea, the Tax Act defines “virtual asset” as an electronic certificate that has economic value and can be transacted or transferred electronically. The Tax Act defines “virtual asset” as an electronic certificate (including any rights related to it) that has economic value and can be transacted or transferred electronically. ) that can be transacted or transferred electronically as a thing with economic value, and whether it falls under the civil law is divided into positive and negative theories. The Supreme Court The Supreme Court considers it to be property under the Criminal Code, but not currency under the Bank of Korea Act. Gold under the Capital Market Act does not fall under the definition of a financial investment product, but it is necessary to expand the concept to provide legal safeguards for investor protection. to protect investors.
 E-finance transactions through blockchain are decentralized, meaning that transaction details are shared and stored among all network participants, and all transactions are notarized and managed by participants through transaction confirmation, so there is no centralized administrator. Under the current income tax law, the taxation structure for virtual asset income is based on direct transactions (P2P) that do not go through virtual asset operators, and since it is difficult to identify international transactions, various types of distribution taxes are imposed for domestic transactions, but we propose to approach international transactions by setting international standards and establishing an information exchange system between countries.
 To identify domestic transactions of virtual assets, virtual assets are generally classified as securities or not, and securities-type virtual assets are considered as 'securities' because they meet the 'Howey test', so it is possible to secure transaction details and manage tax revenue through securities transaction taxation. Except for 'securities-type virtual assets', virtual assets are subject to VAT because they are subject to asset exchange transactions, and if they are distributed from Korea to foreign countries, they can be applied at a zero-rated rate as domestic goods. Since the “electronic wallet” of virtual assets refers to the virtual assets themselves, we would like to propose a method of imposing stamp tax on example savings transaction contracts and certificates based on virtual assets, and a method of imposing registration license tax through the virtual asset electronic register by establishing a study managed by the central government. Sanctions for unregistered transactions of virtual assets and a trial period before the introduction of the system will be implemented to encourage positive transactions.
 To identify international transactions of virtual assets, it is necessary to establish a virtual asset transaction information exchange system between countries and agree on standards for international taxation targets and methods to exercise taxation rights in an information cooperation council.

Analisis SWOT Terhadap Kebijakan Pajak Digital di Indonesia

This study aims to analyze the potential success of digital transaction tax collection policies. The method used is a descriptive research that has a qualitative approach (data comes from literature). Data analysis using the SWOT method (Strength, Weakness, Opportunities, Threats). The results of the research based on the calculations of the IFAS and EFAS matrices as well as cartesius diagram images, it can be analyzed that the strategy used by the Government is a survival strategy (WO/Weakness Opportunity Strategy) in supporting the success of digital taxation policies in Indonesia. WO strategy is an analysis with a strategy of managing or managing available opportunities to minimize or eliminate existing weaknesses or limitations. The government's WO strategy is that DGT's access to data search for foreign business actors is hampered and it is difficult to track foreign business actor's tax compliance. By maximizing international information exchange facilities, this obstacle can be overcome. Weak monitoring and law enforcement for non-compliance with VAT collectors, the government can learn from international agreement forums organized by OECD and G-20 countries and the exchange of international information.

Accounting procedure for operations with cryptocurrency as a variety of virtual assets

The article examines the procedure for accounting transactions with cryptocurrency as a special type of asset. Circulation of cryptocurrency in Ukraine currently does not have proper legislative regulation, and the Law of Ukraine "On Virtual Assets" adopted in 2022 has not yet entered into force. There is no proper legal provision for accounting and taxation of transactions with cryptocurrency carried out by business entities taking into account the advantages of using a decentralized means of circulation. Solving the issue of proper accounting of cryptocurrency and operations with it will contribute to the unshadowing the economy and the receipt of taxes to the state budget.
 It has been established that cryptocurrency can exhibit characteristics of goods, cash and their equivalents, financial instruments, investment real estate, intangible assets, shares, etc. With this in mind, the article analyzes permissible options for classifying cryptocurrency and operations with it to specific classes of accounting accounts based on international and national accounting regulations (standards).
 The European practice of accounting for operations with cryptoassets is analyzed, which is based on two options for accounting for cryptocurrencies: as an intangible asset or as stocks. It was concluded that in the absence of a single methodical approach to the issues of proper accounting of cryptocurrency and operations with it, it is necessary to use international accounting standards and recommendations for accounting of cryptocurrency developed on their basis as an intangible assets (if it is held for sale in the everyday economic activity) or stocks (if held for the purpose of obtaining an investment profit from resale). The purpose of its use by the business entity should be the basis for selecting the recommended accounting options for cryptocurrency as a virtual asset.

Do stock exchanges specialize? Evidence from the New Jersey transaction tax proposal

Exchange ownership in the U.S. is often characterized as excessively concentrated. This leads to a concern that such concentration may prevent peripheral exchanges from mitigating adverse selection costs associated with low-latency arbitrage. We examine this concern using low-latency connectivity disruptions caused by temporary relocations of two markets, NYSE Chicago and Nasdaq PSX, in response to a transaction bill proposal. Although both exchanges had previously announced measures to curb low-latency trading, the connectivity disruptions cause a substantial reduction in adverse selection. These results suggest that peripheral markets have little incentive to implement measures restricting low-latency arbitrage.

Duration‐dependent transaction tax effects on sellers and their behaviors

AbstractWe identify three interrelated behavioral outcomes of the duration‐dependent seller's stamp duty (SSD) implemented in the Singaporean private housing market and examine how it reduces market liquidity. An SSD lowers lock‐in home sellers’ opportunity cost of holding their properties through the lock‐in period thresholds. Consequently, their selling prices are higher than non–lock‐in home sellers. An SSD lowers their probability of home sales; the magnitude of this effect depends on the SSD's tax rate and tax rate deduction across a threshold. Moreover, an SSD drives some lock‐in home sellers to lease out the properties at lowerents.

Digital Assets and the Global Economy: How the Use of Statistical Models Can Help Bitcoin Price Prediction

The purpose of the study is to analyze the potential of statistical modeling in predicting the prices of the Bitcoin cryptocurrency and its impact on the economy. In the course of the article, answers were received to such questions as: What is the impact of macroeconomic events on the dynamics of the Bitcoin price? How quickly does the cryptocurrency market stabilize after the falls? How effective is statistical modeling to solve the problem of predicting the price of Bitcoin? Which model shows the best results? What measures of regulation and control of the cryptocurrency market are necessary at the stage of its formation in the Russian Federation?Materials and methods. Historical data on average monthly Bitcoin closing prices and macroeconomic events such as the COVID-19 pandemic and the Russian-Ukrainian conflict were collected and analyzed. The paper uses statistical models, including ARIMA and LSTM, to predict future Bitcoin prices based on historical data. The accuracy of the models was calculated based on such indexes as the mean absolute error (MAE) and the mean square error (MSE). Results. Analysis of the impact of macroeconomic events showed that during the crisis, the attractiveness of Bitcoin increased and investors used this asset as a new investment tool. During the analysis of the consequences of the Russian-Ukrainian conflict for the cryptocurrency market, its reaction to geopolitical events was revealed according to the increased liquidity indexes in the market. In the process of modeling the dynamics of the average monthly Bitcoin price, the model with parameters (1, 1, 0) at MAE = 15.03% was recognized as the best ARIMA model. The LSTM neural network model on a similar data set showed a MAE error equal to 2.57%.Conclusion. The analysis shows that itcoin was the most attractive investment tool during the crisis, which led to a sharp increase in its price in 2021. The Russian-Ukrainian conflict has also affected its price, causing a significant decline in 2022. However, statistical modeling methods predict an increase in the price of Bitcoin in the first half of 2023, and governments may consider regulating or controlling its use to reduce risks associated with the cryptocurrency market. The recommended measures are the introduction of regulations, the introduction of transaction taxes, the development of national digital currencies, public education and the prevention of criminal activity.

Legal regulation of taxation of income of individuals on transactions with digital financial assets

The author discusses the features of the legal regulation of taxation of transactions of individuals with digital financial assets of the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of digital financial assets in the Russian Federation, when comparing the concept of digital financial assets and tokens. Public relations arising in connection with the turnover of digital financial assets are regulated by the CFA Law, while neither legislation nor law enforcement practice has determined whether the provisions of the CFA Law apply to relations regarding objects corresponding to the characteristics of digital financial assets, but issued in violation of the CFA Law. In this connection, it is necessary to determine whether the norms of the Tax Code of the Russian Federation apply to relations with tokens (digital financial assets) that were issued before the adoption of the CFA Law. The problem is that there is currently no explanation regarding the applicability of the CFA Law to the relations that arise regarding digital financial assets (tokens) that were issued before the CFA Law came into force. Goal of the study was to investigate the experience of foreign legislation and law enforcement practice of the Russian Federation and to identify the problems of legal regulation of taxation of income of individuals on transactions of individuals with digital financial assets.

농촌의 사회유지 기능에 대한 지불의사 분석

This study examines consumer’s perception of and willingness to pay for society maintenance function of rural area in Korea. For the economic valuation of ‘society maintenance function’, a non-market good, we defined society maintenance function of rural area. We surveyed 2,000 consumers and found that 76.8% of respondents perceive that society maintenance function is worth maintaining and expanding. We also surveyed the willingness- to-pay (WTP) for maintaining and expanding society maintenance function using a multi-alternative question method with the security transaction tax and open-end question method with hometown love donation. 61.3% of the people surveyed said that they are willingness pay additional taxes to maintain and expand society maintenance function. The total amounts of WTP for maintaining and expanding society maintenance function calculated are 1.35 trillion Korean won for security transaction tax and 1.8 trillion won for hometown love donation, respectively.

Taxation of Transactions for the Provision of Health Care Services by Health Care Institutions: Question of Theory and Practice

In Ukraine, the obligation to pay taxes and fees in the manner and amounts established by law is constitutionally established, and it is determined that the taxation system is established exclusively through the adoption of relevant laws. The article highlights the main aspects of taxation and exemption from taxation of operations for the provision of health care services by health care institutions. The procedure for taxation with value added tax on operations for the supply of health care services by health care institutions has been disclosed. The publication contains an overview of the main provisions of the normative legal acts regarding the exemption from taxation of operations for the supply of health care services by health care institutions. The conditions under which the Tax Code of Ukraine exempts from taxation transactions for the supply of health care services by health care institutions are highlighted. An analysis of judicial practice was carried out regarding the application of subsection 197.1.5 of clause 197.1 of article 197 of the Tax Code of Ukraine.

Exemption from Indirect Taxes as a Tool to Reduce the Negative Effect of International Sanctions on the Russian Precious Metals Market

The paper is devoted to the study of legal mechanisms of the impact of international organizations and foreign states on the economies of unfriendly states, including sanctions, their nature and consequences of application. In addition, the paper analyzes legal instruments for countering restrictions, such as tax exemptions, the norms of Russian tax legislation and legislation on precious metals, the norms of foreign legislation, in particular the Constitutional Act of Canada, the Act on Excise Taxes, the judicial practice of the Constitutional Court of the Russian Federation. The paper examines, among other things, the consequences of VAT exemption for the purchase of precious metals by individuals and their impact on the precious metals market. The author conducted a comparative study of the legal regulation of taxation of transactions with precious metals in Canada and its provinces. The paper also analyzes the doctrinal definition of the regulatory function of the tax.

Foreign experience in legal regulation of cryptocurrency taxation

The active development and distribution of cryptocurrencies around the world raises a natural question about the need to determine the procedure for legal regulation of taxation of transactions with cryptocurrencies. In this article, on the basis of the comparative legal method, the author examines the experience of legal regulation of cryptocurrencies and the procedure for their taxation in foreign countries. As part of the study, the experience of the United States of America, Singapore, New Zealand, Iran in terms of the legal regulation of cryptocurrencies and the procedure for their taxation is analyzed. It has been established that each of the above-mentioned states adheres to its own special approach in terms of regulation and taxation of cryptocurrencies. As a result of the study, three main models of legal regulation and taxation of cryptocurrencies in foreign jurisdictions were identified: the first approach is based on the recognition of cryptocurrencies as a type of convertible virtual currency that can be used as a means of payment. At the same time, in this approach, for tax purposes, cryptocurrencies are considered as property; under the second approach, cryptocurrencies are not recognized as legal tender. In the second approach, cryptocurrencies are treated as property for tax purposes; the third approach is based on a complete ban on the use of cryptocurrencies in the state, taxation of transactions with cryptocurrencies is not established.

Problems and prospects of the development of taxation of cryptocurrencies transactions

The article is devoted to the problems of taxation of transactions with cryptocurrencies. Disagreements in the interpretation of the essence of cryptocurrencies in the recommendations of the regulators were revealed, which leads to the lack of a reasonable approach to the reflection of such transactions in accounting and the subsequent determination of the tax base. The current legislation and explanations of tax authorities regarding the declaration and taxation of transactions with cryptocurrencies were analyzed and the absence of special rules regarding the taxation of such transactions was found. The general principles of taxation of operations with cryptocurrencies are characterized by a significant tax burden on such operations, which, in conditions of anonymity of cryptowallet owners, leads to concealment of such operations and avoidance of their taxation. The draft laws on regulation of circulation and taxation of transactions with cryptocurrencies were analyzed, the advantages of which compared to the current legislation are a reduction in the rates of taxation of such transactions by personal income tax and income tax; VAT exemption. In order to ensure the possibility of state control of transactions with cryptocurrencies in matters of taxation and financial monitoring, it is proposed to include cryptocurrency exchanges in the list of subjects of primary financial monitoring.

Legal regulation of income taxation of individuals on transactions with digital rights (cryptocurrencies)

The author discusses the features of the legal regulation of taxation of transactions of individuals with digital rights in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of digital rights in the Russian Federation, when determining the system of tax benefits for transactions with digital rights. Public relations arising in connection with the turnover of digital rights are regulated by the Civil Code of the Russian Federation, while neither legislation nor law enforcement practice has been defined, the specifics of taxation of income of individuals on transactions with digital rights. In this connection, it is necessary to highlight the features of the legal regulation of taxation of income of individuals on transactions with digital rights and determine whether these features are applicable to the legal regulation of taxation of income of individuals on transactions with digital rights in the Russian Federation. The problem is that in the legislation of the Russian Federation there is no legal regulation of taxation of income of individuals on transactions with digital rights. The goal go the research is to investigate the experience the foreign legislation and regulatory legal regulation of the Russian Federation and to identify the problems of legal regulation of taxation of income of individuals on transactions of individuals with digital rights. Scientific novelty of the research lies in fact that previously, no research has been conducted on the application of tax benefits in the legal regulation of taxation of personal income on transactions with digital rights.