GLOBAL TAX POLICY OF THE DIGITAL ECONOMY

Prof. John Hutagaol

Director of International Taxation, DGT

• Disampaikan di:
• LOKAKARYA PERPAJAKAN UNTUK DOSEN PKN STAN
Universitas Mercu Buana
• RABU, 16 JANUARI 201923 November 2019
Jakarta,
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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)
 Indonesian Competent Authority, 2012 – now
 Head of Indonesian Delegation for MAP, 2012 – 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
 Professor in Taxation (PERBANAS), 2008 – now
 Chairman of Board Advisor of ATPETSI, 2018 – 2022
 Chairman of KAPj IAI, 2018 – 2020

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OVERVIEW OF ICT DEVELOPMENT
Disruptive Effect of the
ICT Development Impact to Tax Administration

Big Data ICT Utilization to improve Services

Internet of Things Modernized Tax Administration

Artifical Intelligence Human Resources Development

3D Printer

Threats to Service Economy

Opportunities to Service Economy
Robotic e.g Chat Bot
Minimize Cost of Services
Minimize Human Labor
Cross-border Services
Expedite the delivery of services and
more accuracy Leveraging SMEs business

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 INDONESIAN CURRENT DIGITAL ECONOMY OVERVIEW

Source: https://www.internetworldstats.com/top20.htm Source: idEA (indonesian E-commerce Association)

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INDONESIAN CURRENT DIGITAL ECONOMY OVERVIEW

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INDONESIAN CURRENT DIGITAL ECONOMY OVERVIEW

Indonesia is the 6th largest retail e-

commerce buyers in Asia-Pasific, with
total purchase USD10.92 million in
2018.

However, retail e-commerce sales in

Indonesia grows 22% annually, which
is the highest.

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GLOBAL TAX POLICY ON DIGITAL ECONOMY

GLOBAL TAX POLICY ON

DIGITAL ECONOMY

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 DIGITAL ECONOMY TAXATION CHALLENGES

Reliance on
Scale without mass intellectual property

The ability to have a

Particularly heavy reliance
significant economic
on intangible assets,
presence in a country
including intellectual
without a major physical
property.
presence.
Re-defining of Imposing VAT on Creating a level
Permanent digital economy playing field in
User participation
Establishment activities the market
and the value of
data

Many evolving business

models include elements of
data, user participation,
user-generated content
and
network effects.

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 DIGITAL ECONOMY TAXATION CHALLENGES

 Indonesia as a member of OECD-BEPS Inclusive Framework awaits Global Consensus in 2020 to deal with local digital
economy activities.

 Indonesia’s view on unilateral measures potentially creates drawbacks, such as:

1. Double taxation;
2. Dispute;
3. Economic disruption; and
4. Legal and technical issues.
Unilateral measures must be revoked as the global consensus is reached.

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 DESTINATION
PRINCIPLE

INDIRECT TAX
ADMINISTRATIVE
MATTERS

BEPS
ACTION 1
OVERLAPPING
TAXING RIGHT

DIRECT TAX NEXUS

GLOBAL TAX PROFIT ALLOCATION

MATTERS METHOD

GLOBAL ANTI-BEPS

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INDONESIAN TAX ADMINISTRATION & POLICY

INDONESIAN TAX
ADMINISTRATION &
POLICY

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ADDRESSING THE DEVELOPMENT OF DIGITALIZATION

DigitalTaxation
Digital Taxation

Tax
Tax TaxPolicy
Tax Policy
Administration
Administration
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 Tax Reformation Pillars

Tax Revenue Optimization

Strong, Credible, and Accountable Tax Administration
Organization Human Resources IT and Database Business Process Regulation

best fit structure Professional, Reliable Simple business Legal certainty, in

concerning competent, line with economic
information process for
geographical situation, minimize
coverage,
credible, system to effective,
cost of compliance,
organization integrity, and process accurate efficient, and and expand the tax
character, economy, capable data accountable base
local wisdom, performance
potential revenue,
and span of control
INFRASTRUCTURE
BUDGET
SYNERGY WITH STAKEHOLDERS
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Tax Administration Perspective
Education

Dissemination
Organization

Tax Services &

Call Center
Business Process
Tax
Law Enforcement
Database & IT Administration
House Development
Dispute Resolution
Human Resources
Development Compliance Risk
Management

Others
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 Payment Reporting

Overbooking Registration

Overbooking Tax Services Consultation

Deregistration APA & MAP

Confirmation Objection

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INDONESIAN LEGAL FRAMEWORK ON DIGITAL ECONOMY TAXATION

Circular Letter of Director General of Taxes No. SE-62/PJ/2013

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 Thank you and
let us have a fruitful discussion

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