MUC Consulting Emphasizes the Importance of Digital Tax Consensus

JAKARTA. MUC Consulting's Transfer Pricing Partner Wahyu Nuryanto emphasized the importance of the existence of a digital tax consensus proposed by the member countries of the Inclusive Framework (IF), for the sustainability of the global business world.

This is because the consensus that contains the two pillars of the digital taxation mechanism can reduce the risk of double taxation due to the development of information technology-based businesses.

He delivered the issue in a webinar entitled Taxation on Digital Economy held by the Faculty of Management and Business, Universitas Teknologi Digital Indonesia (FMB UTDI), on Wednesday (25/5).

In the virtual event, Wahyu explained that the development of information technology has changed many cross-country business processes. This creates tax problems, especially for the source country where the company derives its income.

Therefore, the implementation of special tax policies on digital transactions is unilateral. In fact, the company is still required to pay taxes in the country where it is domiciled.
As a result of this circumstance, the company will have to pay double tax.

Read: Who Benefits The Most from the Global Tax Consensus?

Wahyu explained that if a global tax agreement is reached, especially in Pillar 1 which regulates the taxing rights between the source country and the company's country of origin, getting a proportional tax share, then there will be no risk of double taxation.

The plan is that countries in the world will agree on the consensus in 2022 and it will be effective starting in 2024.

Response from the World of Education

For information, the webinar was also attended by MUC Consulting's Managing Partner Sugianto who gave a keynote speech, Assistant of Finance Minister for Tax Compliance Yon Arsal and MUC Consulting's Transfer Pricing Manager M. Nur Kusumo Ferby Prihantoro.

In addition, those who were also present at the webinar included UTDI Chancellor Totok Suprawoto, Chairman of the Widya Bakti Education Foundation Yogyakarta Teguh Wijono BP and UTDI FMB Dean, Heru Agus Triyanto.

According to Totok, this webinar is very important for the world of education in responding to any changes that occur in the field of technology. "We hope that this webinar can inspire and enlighten us regarding the implementation of digital economic taxation in Indonesia," said Totok.