Webinar #BIJAK 2: Predicting the Direction of International Tax Policy Following the Issuance of the HPP Law

The development of digital information technology has proven effective in creating ecosystems and economic networks as well as cross-border businesses to be fast-paced and efficient. Digitalization is very useful for entrepreneurs in carrying out their business activities, anytime and from anywhere, without having to open offices in their market countries.

However, the convenience and speed that digitalization offers have added to the complex challenges of global taxation. The effects of digital disruption resulted in the tax system in many countries being no longer effective in generating revenue from the new economic and business activity models they created.

The absence of a uniform tax system between countries leaves a legal loophole that is vulnerable to be exploited by tax evaders. Among other things, by doing an unfair profit shifting across jurisdictional borders.

The potential tax loss due to the rampant practice of profit shifting is a serious tax challenge for many countries in the world. Therefore, a new tax system approach is needed to overcome this global issue.

Recently, the OECD and G20 member countries agreed on two pillars of solutions to address the issue of potential loss of taxes due to digitalization and globalization, especially to overcome Base Erosion and Profit Shifting (BEPS).

The first pillar is the Unified Approach, which allows each country to have taxing rights on the profits of multinational companies that do not have a Permanent Establishment (BUT).

The second pillar of the Global Anti-Base Erosion Rules and Subject to Tax Rule, aimed at reducing unfair tax rate competition and creating a more equitable and inclusive international tax system.

The solutions offered include setting a minimum Corporate Income Tax rate of 15% and requiring multinational companies to pay taxes not only to the country of origin, but also to the market country.

Indonesia, as the 4th largest market country in the world, welcomed the global tax consensus. Because it is also in line with the harmonization of tax regulations that the government is currently pursuing.

So, how should Indonesia address the dynamics of global taxation and the increasingly complex challenges of the digital economy? What concrete steps have been and will the Government of Indonesia take in response to the global tax consensus?

To answer the questions, MUC Consulting held a #BIJAK (Bicara Pajak) webinar entitled "Predicting the Direction of International Tax Policy after the issuance of the HPP Law", on Friday, 25 February 2022, from 14.00 to 16.00 WIB.

The experts who will be the speakers in the #BIJAK Webinar are:

1. Director of International Tax, Directorate General of Taxes (DGT), Mekar Satria Utama, S.E., M.P.Acc
2. Lecturer of the Faculty of Fiscal Administration, University of Indonesia, Drs. Iman Santoso, M.Sc.
3. Executive Director of MUC Tax Research Institute, Wahyu Nuryanto, Ak. MPA.

The event will be hosted by M. Arif Darmawan, Transfer Pricing Consultant of MUC Consulting.

MUC Bicara Pajak or #BIJAK is an innovation project initiated by young consultants of MUC Consulting since 2019 to educate the public regarding the importance of taxation for development.

Through the #BIJAK program, we hope to increase public understanding, concern, and compliance in the taxation sector, which in turn contributes positively to state revenue.

The BIJAK program is packaged in a variety of discussion formats, both offline and online. During the Covid-19 pandemic, we continued to hold discussions online through the Zoom application. You can also join the discussion through live streaming via MUC Consulting's YouTube.

Please register via the following link: https://bit.ly/Bijak2, to be able to actively participate with the speakers through the Zoom application. This event is free and an e-certificate is provided for each participant who registers and fills out the feedback form. Have a great discussion.