DIGITAL SERVICES TAX UNDER LAW NUMBER 2 OF 2020: A NEW TAX TYPE IN INDONESIA?

Abstract

Digital Services Tax under Law Number 2 of 2020 is assessed as a new type of tax in Indonesia which will apply to trading activities through electronic systems (PMSE) and e-commerce platform providers (PPMSE) that face a significant economy but cannot be designated as permanent establishments due to tax agreements between Indonesia and other countries. In other words, Digital Services Tax is an alternative Income Tax in PMSE activities. Proceeding from this, it is necessary to study the position of the Digital Services Tax on PMSE and PPMSE activities in Law Number 2 of 2020 based on the tax law system in Indonesia. This research was conducted to provide an overview of the legal certainty of digital services tax collection in Indonesia. The research method used is normative juridical, with a qualitative approach, and the research specifications used are analytical descriptive. This paper presents original research on a new type of tax in Indonesia resulting in the formulation of the provisions of the Digital Services Tax in Law Number 2 of 2020 that is considered unable to meet legal requirements. This tax is a new type of tax in Indonesia, although until now, it has not been categorized regarding its classification (based on Indonesian Tax Law).