TAXPAYERS PERCEPTION ON THE IMPLEMENTATION OF INDONESIA TAX TREATIES

Abstract

Tax treaties or P3B have been recognized for their important role to attract Foreign Direct Investment (FDI), giving legal certainty, providing tax relief, creating non-discrimination protection, and providing dispute mechanism in international tax. Nevertheless, the existing research that has been available so far yielded varied results with none of those examining the perspective of investors. This research aims to evaluate the state of the treaty as well as identify reasons to negotiate from the perspective of the investors. The data used are primary or first-hand data which is generated from the list of questions. This paper uses exploratory and explanatory methods to define the factors to renegotiate based on the survey and examine the effect of the variables determined from the survey results. The object of this research is the investors and potential investors that are represented by their tax consultant whose they possess the necessary knowledge to answer the questions. This study shows that their perception of tax treaties has a significant effect on their participation. However, a more thorough examination is necessary to explain how tax treaty policy should be formulated.