FM-BINUS-AA-FPU-

78/V2R0
BINUS University

Academic Career: Class Program:

Undergraduate / Master / Doctoral *) International/Regular/Smart Program/Global Class*)

√ Mid Exam  Final Exam Term : Odd/Even/Short *)

 Short Term Exam  Others Exam :

√ Kemanggisan √ Alam Sutera √ Bekasi Academic Year :

 Senayan  Bandung  Malang 2021 / 2022

Faculty / Dept. : Economics & Communication / Deadline Day / Date : Tuesday / 30 Nov 2021
Accounting Time : 17:00:00
Code - Course : TAXN7013020 - International Taxation Class : LA53, LB53, LC53,
LD53
Lecturer : Team Exam Type : Online
) Strikethrough the unnecessary items
The penalty for CHEATING is DROP OUT!!!

Requirements :
1. Write all answers in 1 (one) PDF file.
2. Write all answers completely.
3. If any references based on textbooks/UU/PMK/SE, please write it completely.
4. No cheating between classmates or other students. Do it yourself and be confident.

Nama : Anita Novianto

Kelas : LC53
NIM : 2301854624
Dosen : Maya Safira Dewi, S.E., Ak., M.Si, CA

Learning Objective :

 LO1 : Explain International taxation and double taxation issues related to

international taxation.
 LO2 : Analyze International tax avoidance and nondiscrimination principles and
process of double tax avoidance agreement : tax planning, treaty shopping,
beneficial owner, controlled foreign corporation, thin capitalization.
 LO3 : Analyze International tax issues on PE and business profits

Multiple Choice Questions (bobot 40%) LO 1- 3

Explain each answer based on the applicable tax regulations

1.China Corporation is a Chinese company that won the tender for the construction of a
steam power plant in Cilacap. To build the PLTU, China Corporation made a BUT. Aspects of
international tax on this transaction…
a. As a Foreign Tax Subject
b. As a Domestic Tax Subject
c. As Foreign Tax Subject & Taxpayer
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d. As a Domestic Tax Subject and Taxpayer 78/V2R0

Explanation :
Berdasarkan Undang-Undang Republik Indonesia Nomor 17 Tahun 2000 , Subjek Pajak luar
negeri sekaligus menjadi Wajib Pajak, sehubungan dengan penghasilan yang diterima dari
sumber penghasilan di Indonesia atau diperoleh melalui bentuk usaha tetap di Indonesia.
Dengan perkataan lain Wajib Pajak adalah orang pribadi atau badan yang telah memenuhi
kewajiban subjektif dan objektif.
Berdasarkan tax treaty antara Indonesia dan China , pada Pasal 5 yang menjelaskan
mengenai Badan Usaha Tetap , China Corporation merupakan Permanent Establishment
China yang berada di Indonesia. Sesuai dengan Pasal 5 Ayat (2) memiliki place of
management di Indonesia .
Referensi :
https://jdih.kemenkeu.go.id/fulltext/2000/17TAHUN2000UUPenj.htm
https://pajak.go.id/id/p3b/china#56787r3jn-2

2.What is the relevance of a permanent establishment (PE) concept in international

taxation area?
a. PE is the fixed place of business requirement
b. PE creates a new taxpayer in source country
c. PE is a minimum threshold that must be satisfied before a source country imposes tax
on business profit which are received by non-resident taxpayer
d. PE is a significant parameter in which tax prayer can claim treaty benefit

Explanation :
BUT (Permanent Establishment) merupakan terminologi perpajakan internasional yang
merupakan konsekuensi dari kegiatan usaha dengan basis/lokasi tetap di negara treaty
partner, setelah memenuhi kondisi-kondisi tertentu yang diatur dalam Tax Treaty atau
Undang-undang, seperti: jenis kegiatan usaha yang dilaksanakan di negara treaty partner,
sumber penghasilan dan jangka waktu ("Time Test"). Adanya Bentuk Usaha Tetap ini
mempengaruhi Hak suatu negara untuk mengenakan pajak terhadap obyek yang di
maksud. Status BUT dalam praktek masih perlu dikaji lagi, metode penelitian yang
digunakan adalah secara historis-yuridis, comparatif dan analitis serta mengunakan tekhnik
wawancara. Perjalanan UU Pajak kita dalam menentukan status BUT ternyata sering
berubah-ubah misal, dalam Pajak Perseroan 1925 menempatkan BUT sebagai subjek pajak
luar negeri, kemudian Undang-undang No. 7 Tahun 1983 menempatkan BUT sebagai
subjek pajak dalam negeri kemudian Undang-undang No. 10 tahun 1994 stutus BUT
dikembalikan lagi sebagai Subjek pajak luar negeri sampai dengan sekarang. Ada kesulitan
juga berkaitan dengan penentuan kondisi BUT untuk kondisi-kondisi tertentu suatu missal
bagaimana menentukan suatu BUT untuk transaksi yang menggunakan E-Commerce.
Kiranya perlu dikaji ulang berkaitan dengan status BUT sebagai Subjek Pajak dan juga harus
sudah mulai disiapkan peraturan yang terkait dengan penentuan suatu BUT secara lengkap.

Referensi :
https://media.neliti.com/media/publications/167924-ID-aspek-hukum-subyek-pajak-
bentuk-usaha-te.pdf

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3.One of the problems in international taxation is that using the 78/V2R0
facilities in the tax treaty
instead of avoiding double taxation, it provides an opportunity for tax subjects not to be
taxed anywhere. Is the meaning of …
a. Tax Heaven Countries
b. Treaty Shopping
c. Transfer Pricing
d. Double Taxation

Explanation :
Treaty Shopping adalah suatu skema yang dilakukan untuk mendapatkan fasilitas,
misalnya penurunan tarif pemotongan pajak (withholding taxes) yang disediakan oleh
suatu perjanjian penghindaran pajak berganda, oleh subyek pajak yang sebenarnya tidak
berhak untuk mendapatkan fasilitas tersebut. Dalam penjelasan di laman resminya,
otoritas pajak menyebutkan Treaty Shopping merupakan sebuah upaya penyalahgunaan
P3B (treaty abuse) karena karena menggunakan pasal-pasal dalam perjanjian
penghindaran pajak berganda yang tidak sesuai dengan maksud dan tujuan dibuatnya tax
treaty.
Referensi :
https://www.ssas.co.id/optimalisasi-setoran-pajak-melalui-review-tax-treaty/

4.PT. ABC paid interest to XYZ Co. Ltd in Singapore (not have COD). Based on Indonesia's
P3B with Singapore, the interest rate is 10%. How much tax deducted by PT. ABC of the
interest??
a. 20% sesuai dengan tarif PPh Pasal 26
b. Tidak terdapat pajak penghasilan yang dipotong atas penghasilan bunga tersebut.
c. 10% sesuai dengan tarif P3B
d. Mana yang lebih kecil antara tarif P3B dengan tarif PPh Pasal 26

Explanation :
Pasal 26 UU Nomor 7 Tahun 1983 tentang Pajak Penghasilan sebagaimana telah diubah
terakhir
dengan UU Nomor 17 Tahun 2000 mengatur hal-hal sebagai berikut :
a. Pasal 26 ayat (1) :
"Atas penghasilan tersebut di bawah ini, dengan nama dan dalam bentuk apapun, yang
dibayarkan atau terutang oleh badan pemerintah, Subjek Pajak dalam negeri,
penyelenggara
kegiatan, bentuk usaha tetap, atau perwakilan perusahaan luar negeri lainnya kepada
Wajib
Pajak luar negeri selain bentuk usaha tetap di Indonesia, dipotong pajak sebesar 20% (dua
puluh persen) dari jumlah bruto oleh pihak yang wajib membayarkan :
a. dividen;
b. bunga, termasuk premium, diskonto, premi swap dan imbalan sehubungan dengan
c. jaminan pengembalian utang;
d. royalti, sewa dan penghasilan lain sehubungan dengan penggunaan harta;
e. imbalan sehubungan dengan jasa, pekerjaan, dan kegiatan;
f. hadiah dan penghargaan;
g. pensiun dan pembayaran berkala lainnya."
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Referensi : 78/V2R0
https://ortax.org/forums/discussion/tax-treaty-singapura\

5.Article 2 paragraph 3 a and b of UU PPh emphasize that Indonesia adheres to 2 (two)

principles principles regarding taxation rights based on connecting factors, the two
principles are?
a. Territorial Principles and Residency Principles
b. The Source Principle and the Principle of Citizenship
c. Domicile Principle and Residency Principle
d. Residency Principle and Source Principle

Case 1 (bobot 15%) LO 1-3

Mr. Bima (single) is a resident of the Indonesian state, in 2020 he will earn the following income:
a. Netto Income Local Rp 1.800.000.000
b. Netto Income Foreign form USA Rp 2.228.253.750 (Tax Rate USA 39,6%)
c. Loss in Singapura Rp 500.000.000 (Tax Rate Singapura
20%) Calculate the taxes payable Mr. Bima!
Answer :
Ordinary tax Credit Method:
PPh Pasal 24
Penghasilan Dalam Negeri : Rp 1.800.000.000
Penghasilan Luar Negeri (USA) : Rp 2.228.253.750
Rugi Di Singapura : - (Tidak dihitung karena kerugian dari penghasilan luar negeri)
Penghasilan Netto : Rp 4.028.253.750
PTKP (TK/0) : Rp 54.000.000
PKP : Rp 3.974.253.750
= Rp 3.974.253.000
PPh Terutang (Pasal 17)
5% x Rp 50.000.000 : Rp 2.500.000
15% x Rp 200.000.000 : Rp 30.000.000
25% x Rp 250.000.000 : Rp 62.500.000
30% x Rp 3.474.253.000 : Rp 1.042.275.900
PPh Terutang : Rp 1.137.275.900

PPh Maksimal dikreditkan

Penghasilan Luar Negeri (USA) : PH LN x PPh Terutang
PKP
Penghasilan Luar Negeri (USA) : Rp 2.228.253.750 x Rp 1.137.275.900
Rp 3.974.253.000
Penghasilan Luar Negeri (USA) : Rp 637.639.146 (Yang digunakan karena lebih kecil dibandingkan
yang dipotong dan pph terutang)

PPh Yang dipotong Luar Negeri

Penghasilan Luar Negeri (USA) : Tarif x Penghasilan
: 39.6% x Rp 2.228.253.750 = Rp 882.388.485
PPH Yang Dibayarkan
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PPh 21 : Rp 1.137.275.900 78/V2R0

Kredit Pajak :Rp 637.639.146 -

Rp 499.636.754

Case 2 (bobot 15%) LO 1- 3

GE Electric Co.ltd, a Singapore company, manufacturer of electronic products
"General Electric" has a branch office in Indonesia, under name GE Indonesia. The
branch office's business activity is to market "GE" electronic products throughout
Indonesia. In GE Indonesia's 2020 financial report, there are fees charged by their
head office in Singapore GE Electric Co.ltd as follows:
Gross Revenue Rp 12.589.000.000
COGS Rp 10.065.000.000
Operating Costs Rp 1.208.000.000
Of these operating costs, there are:
Paid Royalti fee to Head Office Rp 120.000.000
Tax PPh Art 21 employees Rp 3.200.000
Loss of operational car sales Rp 1.320.000
all after-tax income, sent to the parent company overseas.
Calculate tax paid by GE Indonesia!
Answer :

GE Electric Co, Ltd

Rekonsiliasi Fiskal
Periode Pajak 2020
Koreksi Pajak
Laporan Fiskal Note
L/R Komersial Negatif (-
Positif (+) (Rp) s
)
12.589.000.00
Gross revenue 12.589.000.000
0
10.065.000.00
COGS 10.065.000.000
0
Gross Profit 2.524.000.000 2.524.000.000
Operating Expenses :
Paid royalti fee to Head Office 120.000.000 120.000.000 DE
3.200.00
Tax PPh Art 21 employees 3.200.000 - NDE
0
Loss of operational car sales 1.320.000 1.320.000 DE
Other operating expense 1.083.480.000 1.083.480.000 DE
Total Opeating Expenses 1.208.000.000 1.204.800.000
Net Income Before Tax 1.316.000.000 1.319.200.000

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Net Income Fiskal 1.319.200.000 78/V2R0
PPh Terutang :
PPh Tahunan yang harus dibayar (22%) 290.224.000
Net Income After Tax 1.028.976.000
PPh 26 Branch Profit Tax ( 20%) 205.795.200

Case 3 (bobot 15%) LO 2

Great Corp is a heavy equipment manufacturer in the Japan. To market its
products in Indonesia, established PT ABC with 60% share ownership. Apart from
selling Great Corp products, PT ABC also sells Good Corp products, an
independent company domiciled in Paris. The following is data on the purchase
price of the two companies and the selling price to independent consumers in
Indonesia for 2020.
Great Corp Product Good Corp Product
Units bought & sold 200 100
Selling price per unit $ 150 $ 140
Purchase Price per unit $ 135 $ 119

Please explain the transaction above is related to the TP!

Answer :

Good Corp
Great Corp Product
Product
Selling price per unit $30.000 $14.000
Purchase price per unit $27.000 $11.900
Gross Profit ( Selling price - Purchase) $3.000 $2.100
Gross Margin ( Gross profit / Selling Price) 10% 15%
Based on the calculation above, the results of the Gross margin on Good Corp
Products originating from independent transactions, where the gross margin is a
fair gross margin on resale has a value of 15%. So in this case, the comparison data
is carried out to determine the fair purchase price of the product per unit from
Great Corp Product, the calculation must be carried out as follows:
ALP = Resale Price - ( Gross Margin Independent × Resale Price)
ALP = $30.000 - (15% × $30.000)
= $ 30.000 - $4.500
= $25.500

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Case 4 (bobot 15%) LO 1 & 3 78/V2R0

In 2016 PT ABC (Indonesia) conducted several transactions related to services

from abroad. Among them are consulting services from a Korean consultant
"Korean Consult Ltd" and the Korean consulting company has COD, and carried
out the work in Indonesia for 190 days. Shanghai Ltd is a permanent
establishment domiciled in Indonesia and carries out its business activities in
Indonesia. In 2020, Shangsai Ltd made a Profit and Loss Statement.
Explain the difference between these two cases!
Answer :
In the first case, PT ABC used the services of a consultant from Korea. And the
consultant already has a Cod or Certificate of Domicile, which means that the tax
imposed is a tax treaty. And in the agreement between Indonesia and South Korea
in "THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO TAXES ON INCOME" in article 4 paragraph 1, namely
"For the purposes of this Agreement, the term "resident of a Contracting State"
means any a person who, according to the laws of that Contracting State, is
treated as a resident for tax purposes in that Contracting State, but this term does
not include any person who may be taxed in that State only on income from
sources in that State. ." And in article 5 paragraphs 1 and 3 which has the meaning
"For the purposes of this Agreement, the term "permanent establishment" means
a fixed place of business through which the business of an enterprise is wholly or
partly carried on and the provision of services, including consulting services, by an
enterprise through employees or other persons employed by the enterprise for
such purposes, but only if such activities continue (for the same or related projects)
within the country for an aggregate period or periods of more than three months
in any twelve month period." Which means in this case the consultant is
considered a BUT and is subject to income tax in Indonesia, which is 15% in
accordance with the tax treaty agreement.
Then in the second case, Shanghai Ltd is a permanent establishment domiciled in
Indonesia and carries out its business activities in Indonesia. In the Income Tax
Law, BUT is included in foreign tax subjects, but the BUT's tax obligations are not
much different from the tax obligations of domestic corporate taxpayers. BUT
domiciled in Indonesia is required to have a NPWP as a tax identity and must also
be confirmed as a PKP if the BUT collects VAT. After having a NPWP and/or being
confirmed as a PKP, BUT is obliged to carry out the same tax rights and obligations
as domestic taxpayers, including reporting the Annual SPT. BUT is required to
submit Corporate Income Tax Return, Article 21/26 Income Tax Return, Article
23/26 Income Tax, Article 22 Income Tax, Article 4 paragraph (2) PPh and/or VAT
in accordance with the provisions. The source of income subject to tax is only
domestic income and there are differences in tax objects and fees that may be

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deducted compared to domestic Corporate Taxpayers. However, if 78/V2R0
there is an
agreement regarding a tax treaty between the two related countries, the tax
treaty rate will be imposed.
From the two cases above, even though they are included as foreign taxpayers, in
the first case the tax imposed is only a tax treaty, but in the second case, Shanghai
Ltd is subject to tax treaty, as well as Article 26 of Income Tax on income sent
abroad. And what makes the difference is that in the first case it is still subject to
tax, but only for the services of the consultant. The second case is imposed on all
business activities carried out in Indonesia. And report it on corporate tax.

GOOD LUCK
- It’s always seem impossible until its done - Nelson Mandela

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