PEMAJAKAN EKONOMI DIGITAL

Pusdiklat Keuangan UmumJakarta, 28 Agustus 2019

Prof. P.M. John L. Hutagaol

CURRICULUM VITAE

Name : Prof. Dr. Poltak Maruli John Liberty Hutagaol,

M.Acc., M.Ec.(Hons.), S.E., Ak., C.A.

Place/Date of Birth : Jakarta, 27 November 1965

Office Address : Jalan Gatot Subroto Kav. 40-42, Jakarta

I. Job Title

Head of Tax Office Foreign Direct Investment One (2009-2011)

Advisor for Tax Services (2011-2011)

Advisor for Tax Law Enforcement (2011-2012)

Director of Tax Regulation II (2012-2016)

Director of International Taxation (2016-now)

II. Education

Bachelor of Economics (University of Brawijaya, Malang) – 1988

Master of Economics in Accountancy (University of Macquarie, Sydney) – 1994

Master of Economics by Research (University of Macquarie, Sydney) – 1995

PhD in Business Management (University of Padjadjaran, Bandung) – 2004

III. Professional Expertise

Indonesian Competent Authority, 2012 – now

Professor in Taxation (PERBANAS), 2008 – now

Chairman of Board Advisor of ATPETSI, 2018 – 2022

Chairman of KAPj IAI, 2018 – 2020

Head of Indonesian Delegation for MAP, 2012 – now

OUTLINE

Long-term Solution

Existing Regulation

Permanent Establishment

Introduction

4

3

2

1

4

Introduction

Part 1: Challenges and Opportunities to Tax Digital Economy

WHAT IS DIGITAL ECONOMY?

“the result of a transformative process brought byinformation and communication technology (ICT), whichhas made technologies cheaper, more powerful, andwidely standardised, improving business processes andbolstering innovation across all sectors of the economy”

- BEPS Action 1, 2015

Three main characteristics of the digital economy

Scale without mass

6

Source: Institute for Austrian and International Tax Law www.wu.ac.at/taxlaw

The ability to have a significant economic presence in a country

without a majorphysical presence.

Reliance on intellectual

property

Particularly heavy reliance on intangible

assets, including intellectual property.

User participation and the value

of data

Many evolving businessmodels include

elements of data, user participation, user-

generated content andnetwork effects.

Challenges and Opportunities of the Digital Economy

8

Permanent Establishment

Part 1: Challenges and Opportunities to Tax Digital Economy

Pengertian Bentuk Usaha Tetap (Pasal 4)

Bentuk Usaha Tetap adalahbentuk usaha yang dipergunakanoleh orang pribadi yang tidakbertempat tinggal di Indonesia,orang pribadi yang berada diIndonesia tidak lebih dari 183(seratus delapan puluh tiga) haridalam jangka waktu 12 (duabelas) bulan, dan badan yangtidak didirikan dan tidakbertempat kedudukan diIndonesia untuk menjalankanusaha atau melakukan kegiatandi Indonesia.

Pengertian Bentuk Usaha Tetap Pasal (1) dan (4) PMK No. 35/PMK.03/2019

1

2

3

4

5

BUTAsuransi

BUT Jasa

BUT TempatUsaha Tetap

BUTKonstruksi

BUTAgen

Tempat usaha bersifat permanen yang digunakanoleh Orang Pribadi Asing atau Badan Asing untukmenjalankan usaha atau melakukan kegiatan (fixedplace of business through which the business of anenterprise is wholly or partly carried on).

1

Proyek konstruksi, instalasi, atau proyek perakitanyang merupakan usaha atau kegiatan OrangPribadi Asing atau Badan Asing di Indonesia.

2

Pemberian jasa dalam bentuk apa pun olehpegawai atau orang lain, sepanjang dilakukan lebihdari 60 (enam puluh) hari dalam jangka waktu 12(dua belas) bulan.

3

Orang pribadi atau badan yang bertindak selakuagen yang kedudukannya tidak bebas untuk danatas nama Orang Pribadi Asing atau Badan Asing.

4

Agen atau pegawai dari perusahaan asuransi yang tidakdidirikan dan tidak bertempat kedudukan di Indonesia yangmenerima premi asuransi di Indonesia atau menanggungrisiko di Indonesia di mana pihak tertanggung bertempattinggal, bertempat kedudukan, atau berada di Indonesia.

5

BUT

Jenis Bentuk Usaha TetapPasal 4 PMK No. 35/PMK.03/2019

BUT Tempat Usaha Tetap (Pasal 5)

Tempat kedudukan manajemen Ruang untuk promosi dan penjualan

Cabang perusahaan Pertambangan dan penggalian sumber alam

Kantor perwakilan Wilayah kerja pertambangan minyak dan gas bumi

Gedung kantor Perikanan, peternakan, pertanian, perkebunan, ataukehutanan

Pabrik Komputer, agen elektronik, atau peralatan otomatis yangdimiliki, disewa, atau digunakan untuk menjalankan usahamelalui internet

Bengkel

Gudang

BUT Tempat Usaha Tetap Pasal 5 (1) PMK No. 35/PMK.03/2019

Challenges and Opportunities to Tax Digital Economy

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Indonesia’s Existing Regulation

Part 1: Challenges and Opportunities to Tax Digital Economy

Indonesia e-Commerce Road Map 2017-2019(Presiential Decree No. 74 Year 2017)

Simplification:

Simplification for e-commerce SME

Incentive for e-commerce investor Venture capital Angel Investor (Individuals who voluntarily

invest their personal money) and Otherinvestor for start-up

Registration ProcedureRegulation for Registration through electronicsystem

Equal TreatmentRegulation to tax global e-commerce player aswell as local player

Registration Procedure for both domestic and foreign e-

Commerce Player

Equal Tax Treatment for Local and Global e-Commerce Player

Simplify Tax Obligation

requirement for e-Commerce

Tax Program

Online marketpla

ce

Service provision of place/time

Monthly Fixed Fee, Rent Fee, Registration

Fee, Fixed Fee, Subscription Fee

Sales of goods/services

Business income

Delivery of Sales Results to Merchant by

Online Marketplace

Per Sale Fee, commission, service provider settlement fee, credit card fee

Classified Ads

Service provision of place/time

Monthly Fixed Fee, Rent Fee, Registration

Fee, Fixed Fee, Subscription Fee

Daily Deals

Service provision of place/time

Monthly Fixed Fee, Rent Fee, Registration

Fee, Fixed Fee, Subscription Fee

Sales of goods/services

Business income

Delivery of Sales Results to Merchant by

Online Marketplace

Per Sale Fee, commission, service provider settlement fee, credit card fee

Classified Ads

Service provision of place/time

Monthly Fixed Fee, Rent Fee, Registration

Fee, Fixed Fee, Subscription Fee

Income TaxLaw Number 36 Year 2008

Business income

Art.14 para 1

Other services

Art.4 para 2, Art.21, Art.23, Art.26

VATLaw Number 42 Year 2009

Government Regulation Number 1 of 2012

Delivery of Taxable Goods/Services within the Customs Area

Utilization of Taxable Services from outside the Customs Area

Circular Letter of Director General of

Taxes No. SE-62/PJ/2013

Indonesia Existing Law and Regulation

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Proposals: Long–term Solution

Part 2: UPDATES ON DIGITAL ECONOMY TAXATION

TIMELINE

July 2013

Oct 2015

March 2018

January 2019

2020

OECD Action Plan on BEPS

Public Consult. Document

Interim Report(Action 1)BEPS Action 1

Report

Final Report(Action 1)

Current Development – Task Force on the Digital Economy Public Consultation

Nexus & Profit Allocation

User Participation

Marketing Intangibles

Significant Economic

Presence

Taxing Income where value is created

1st Pillar 2nd Pillar

Global anti-base erosion proposal

1. Income inclusion rule that would tax theincome of a foreign branch or a controlledentity if that income was subject to a loweffective tax rate in the jurisdiction ofestablishment or residence

2. A tax on base eroding payments that woulddeny a deduction or treaty relief for certainpayments unless that payment was subjectto an effective tax rate at or above minimumrate

INDONESIA POSITION

Potential drawbacks of unilateral measures:

1. Double taxation

2. Dispute

3. Economic disruption

4. Legal & technical issues

5. Must be revoked when a global consensus is reached