IMPLEMENTATION OF INCOME TAX ON VIRTUAL OFFICE IN INDONESIA

Virtual office is a service that provides rent of business addresses, receptionist
services, call forwarding services, mailing services, and also provides a rent of meeting room for company usage. In terms of Income Tax Law, Virtual Office has clearly and firmly not been set. This study aims to analyze virtual office treatment for taxing purposes, that is, to be treated as a service or a rent. It also checks the imposition of Indonesian Income Tax on a virtual office. This study uses a qualitative approach with data collection through in-depth interviews and
literature studies. The results of this study indicate that the virtual office fulfils the requirements of rents and services. Virtual office can be treated as a rent if there is Article 4 paragraph (2) on the rent and land building. Meanwhile, if the virtual office does not provide room usage, it can be treated as management service. The imposition of income tax on a virtual office which is considered as a service, is subject to Article 23 Income Tax on management service. How to
determine the virtual office in general and the treatment in income tax.