Applying Principles of Equity and Certainty in Taxing E-Commerce: A Case Study of Indonesia

E-commerce transactions can be completed quickly and efficiently anytime and anyplace using the Internet. That characteristic creates problems in applying a transparent and fair tax regulation. The Organization for Economic Co-operation and Development addresses four types of e-commerce transactions: online marketplaces, online retailers, classified ads, and daily deals. Indonesia has adopted its specifications in setting tax laws. The purpose of this research is to explain and describe the legal certainty and fairness of the e-commerce tax policy in Indonesia. It explains that taxation should be equitable and indifferent between e-commerce and conventional transactions. Taxes must be certain and simple so that taxpayers can anticipate tax consequences of transactions and businesses can base decisions on economic rather than tax considerations. Taxpayers in identical situations making identical transactions should be taxed identically. Potential for tax evasion should be minimized.