Hello, is there anything we can help?
Jakarta, Ideatax -- Rapid technological advances in the digital era have changed almost every aspect of our lives, including the tax system. Tax digitalization has been underway, but there are still a number of challenges that need to be overcome so that this system can function optimally.
These changes have created a major shift in the way companies and individuals interact with tax, requiring innovative and tailored solutions to address them.
So, what is the right tax solution to overcome the challenges that arise in this digital era? Let's see.
Solutions to Face Tax Challenges in the Digital Era
The digital era has brought about significant changes in tax dynamics, presenting new challenges that must be overcome. Below are various solutions that can be used to face tax challenges in this digital era.
1. Latest Tax Regulations
The government has committed to modernizing the tax system through various digital tax solutions that do not only apply to digital companies. Tax regulations in the digital era will consider important points in various tax laws, such as the Income Tax Law, the Value Added Tax Law, and the General Provisions and Tax Procedures Law. The regulatory plan is currently being worked on in the form of a Draft Law (RUU) on Tax Provisions and Facilities for Strengthening the Economy which includes efforts to increase economic activity through the tax sector.
2. Overcoming Tax Avoidance
In order to overcome tax avoidance, the government will require a number of digital companies to collect, deposit and report Value Added Tax (VAT) to the tax authorities. This step will help reduce tax avoidance practices that are detrimental to the country.
3. Tax Application Development
The government continues to strive to improve technology by developing various tax application programs, such as Monitoring Tax Reporting and Payments (MP3), electronic registration (e-reg), online SPT reporting (e-filing), Geographic Information Systems (GIS), and Information Systems DJP (replacement for SIP). This will make tax reporting easier and more efficient for all parties.
4. Levy Equalization for Cross-Border Transactions
In facing increasingly complex cross-border transactions, the government can implement a new tax solution tailored to the tax ecosystem in Indonesia, known as the Equalization Levy. This levy will impose Value Added Tax (VAT) on online transactions between foreign taxpayers and domestic taxpayers. This will help ensure that cross-border transactions are also taxed fairly.
5. Utilizing the Marketplace in NPWP Data Collection
The government can collaborate with marketplace platforms to collect data on merchant owners' Taxpayer Identification Numbers (NPWP). This can be required as a condition for registering on the platform, and re-registration can also be carried out for merchant owners who do not yet have a NPWP. This data will help tax authorities map tax potential, which can then be used in formulating further regulations.
That is the discussion regarding tax solutions by the government to overcome challenges that may arise in the digital era. Hopefully these solutions can bring convenience and fairness to the tax system.
If you want to find out more information about taxation in the digital era, visit our website at https://ideatax.id/. If you are an entrepreneur and your company is having problems related to taxation, you can also consult with us to get a solution.
Let's work together to advance the tax system for a better future!
