TY - JOUR
T1 - RETHINKING TAX TREATMENT DURING THE COVID-19 PANDEMIC
T2 - A NOTE ON INDONESIA'S OMNIBUS LAW JOB CREATION TAXATION CLUSTER
AU - Tambunan, Maria R.U.D.
N1 - Funding Information:
The author would like to thank the Faculty of Administrative Science Universitas Indonesia for funding the research (research grant FY 2021) as well as Jessikah Niesten for her editorial assistance.
Publisher Copyright:
© 2021, Australasian Tax Teachers' Association. All rights reserved.
PY - 2021
Y1 - 2021
N2 - The Indonesia Omnibus Law Job Creation was released during the COVID-19 pandemic as a shortcut to revise laws, with the aim of realising a welcoming investment climate. The tax treatment in the Omnibus consists of a reduction of corporate income tax rate; tax relief on dividend; a reduction of the tax penalty; the imposition of VAT collected by an assigned foreign supplier; and the repackaging of tax incentives by adding local tax and charges as additional tax incentives. The reduction of corporate income tax has brought Indonesia to a deep tax revenue shortfall, which is added to by tax relief on dividend. However, the reduction of the tax penalty seems to lead to the proportionality principle of sanction. The assignment of foreign suppliers to collect VAT may contribute to VAT revenue, but its potential still could not be met. Finally, the government still has the confidence to offer tax incentive packages, in order to attract investment.
AB - The Indonesia Omnibus Law Job Creation was released during the COVID-19 pandemic as a shortcut to revise laws, with the aim of realising a welcoming investment climate. The tax treatment in the Omnibus consists of a reduction of corporate income tax rate; tax relief on dividend; a reduction of the tax penalty; the imposition of VAT collected by an assigned foreign supplier; and the repackaging of tax incentives by adding local tax and charges as additional tax incentives. The reduction of corporate income tax has brought Indonesia to a deep tax revenue shortfall, which is added to by tax relief on dividend. However, the reduction of the tax penalty seems to lead to the proportionality principle of sanction. The assignment of foreign suppliers to collect VAT may contribute to VAT revenue, but its potential still could not be met. Finally, the government still has the confidence to offer tax incentive packages, in order to attract investment.
KW - Income tax
KW - Omnibus law
KW - Tax facilities
UR - http://www.scopus.com/inward/record.url?scp=85130534591&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85130534591
SN - 1832-911X
VL - 16
SP - 170
EP - 197
JO - Journal of the Australasian Tax Teachers Association
JF - Journal of the Australasian Tax Teachers Association
ER -
