Indonesian Omnibus Law in Taxation

Kartanto, Lucky and Rijadi, Prasetijo and Priyati, Sri (2020) Indonesian Omnibus Law in Taxation. International Journal of Innovation, Creativity and Change, 13 (7). pp. 16-32. ISSN 2201-1323

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Abstract

The purpose of the State, that is the basis for the Government of Indonesia, is to protect all Indonesians and promote the general welfare, educate the life of the nation, and participate in the order of the world based on independence, eternal peace, and social justice. Reviewed from an economic perspective, Indonesia is a country that lives alongside other countries, and the economy in Indonesia has always been influenced by the global economic situation. The national and global economic environment continues to undergo dynamic changes, among others, due to fluctuations in commodity prices, as well as the trade policies and rising interest rates of other countries. Indonesia faces the same problem as other countries. However, some countries, such as France, Italy, Austria, Spain, India, the United Kingdom, and Australia, have taken the first steps by applying taxes on electronic transactions with different mechanisms. This was achieved unilaterally, without waiting for an internationally agreed consensus at the end of 2020, through the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which is also known as the Inclusive Framework. The study is classified as a normative, descriptive juridical legal research. This study explores the problems that arise in the implementation of general provisions and procedures of taxation, income tax, value added tax, customs, excise, local taxes, and regional retribution, as well as local governments, according to the prevailing arrangements. In order to increase the economic growth, the required source of adequate investment funding is sourced from tax receipts and private sector participation. Nevertheless, Indonesia's economy is assessed as vulnerable because it is supported only by certain mainstay sectors. In addition, domestic conditions alone have not attracted enough interest to invest and a provision remains that inhibits investment. The omnibus law in taxation, in Indonesia, and from the perspective of philosophical, juridical, and sociological foundations, provides some advantage and benefit. Pages 16 to 32

Item Type:	Article
Uncontrolled Keywords:	Omnibus law, OECD, Philosophical, Juridical, Sociological.
Subjects:	K Law > K Law (General) > Civil Law K Law > Civil Law Accounting > Tax Accounting > Tax
Divisions:	Faculty of Law > Bachelor of Law
Depositing User:	Perpus Ubhara Surabaya
Date Deposited:	30 Nov 2020 06:16
Last Modified:	30 Nov 2020 06:16
URI:	http://eprints.ubhara.ac.id/id/eprint/647

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