Scientax: Jurnal Kajian Ilmiah Perpajakan Indonesia

Data Mining Innovation to Predict the Duration of Tax Disputes

2025-04-30T09:56:07+07:00

The resolution of complex tax disputes poses a significant challenge to Indonesia's tax system, impacting administrative efficiency and taxpayer certainty. This study develops prediction models for tax dispute resolution duration using machine learning techniques: Decision Tree, Random Forest, and Support Vector Machine (SVM). The analysis covers 16,223 dispute cases from 2016 to 2023, employing data mining to identify critical factors influencing resolution times. Results indicate that Random Forest and SVM models achieve high accuracy (99.7%), significantly outperforming traditional methods. The Random Forest excels in interpretability, whereas the SVM delivers stable predictions compared to the Decision Tree. These findings imply potential improvements in dispute resolution speed, resource optimization, administrative transparency, and automation, thereby reducing case backlogs and enhancing taxpayer confidence. The primary contribution lies in applying machine learning to enhance Indonesia's tax dispute resolution efficiency, providing an accurate, objective, and data-driven method. This research also suggests future opportunities to develop advanced prediction models using ensemble learning or deep learning techniques. Such developments could further enhance the fairness and transparency of the tax system.

The Influence of Tax Competition on Corporate Income Tax Rates and Tax Holidays in ASEAN-6

2025-03-24T09:54:56+07:00

This research is motivated by the tax competition phenomenon, where countries compete to offer attractive tax policies to attract investors and boost national revenue. Two key instruments often employed are Corporate Income Tax (CIT) rate adjustments and tax incentives in the form of tax holidays. The purpose of this research is to analyse the impact of tax competition on CIT rates and tax holiday policies in six ASEAN countries: Indonesia, Malaysia, Thailand, Philippines, Singapore, and Vietnam. Over the past decade, most ASEAN-6 countries have reduced CIT rates and extended the maximum tax holiday period. This research employs a quantitative approach using regression coefficient tests, a reliability analysis model, and determination coefficient values. The findings reveal that tax competition has a positive impact on CIT rates and tax holidays in ASEAN-6. However, the effect on CIT rates is not significant, neither partial nor simultaneity effect. In contrast, tax competition significantly influences tax holiday policies, either a partial or a simultaneous effect. These findings are expected to provide insights into understanding the dynamics of tax competition and its implications for tax policy.

Persepsi Industri Kota Batam terhadap Super Tax Deduction

2025-04-14T08:59:36+07:00

The super tax deduction provision enables the industrial sector to engage in vocational education initiatives by innovating and enhancing human resources to cultivate a better, more competent workforce. Nonetheless, the actual circumstances do not align with the anticipated objectives. Consequently, this investigation was undertaken. This research seeks to examine the attitude of Batam City's industry about the super tax deductions law and the use of tax incentives in industrial operations. The investigator used a descriptive qualitative methodology with a purposive sample strategy. The analytical method was used to handle raw data derived from the distribution of questionnaires and focus group discussions (FGD) involving 13 industries in Batam City. The research findings suggest that the use of the super tax deductions tax facility in Batam City's industry remains suboptimal. This results from insufficient government support for socialization and help with the super tax deductions rule. The government must strengthen the super tax deduction socialization strategy to prevent uneven regulations. Furthermore, the government must provide explicit directives on the methodologies for computing and reporting super tax deduction facilities. The government may use the findings of this research to assess implemented policies. Taxpayers may use it as supplementary information for tax preparation via tax incentives.

Assessing the Impact of Tax Regulation Changes on Cross-Border E-Commerce

2025-01-31T16:24:59+07:00

Policy analysis is essential for evaluating and measuring the achievement of policy objectives. This study employs a differences-in-differences method to assess the impact of the implementation of Ministry of Finance Regulation No. 199/PMK.04/2019, which introduced a new tax policy on cross-border e-commerce. Using cross-border e-commerce data (consignment note documents) from 2017 to 2022 provided by the Directorate General of Customs and Excise, the study measures the policy’s effect on import values and the number of transactions (declared documents). The results show that the implementation of the new tax regulation in cross-border e-commerce has reduced importation values and the number of transactions. Furthermore, the tariff increases on fashion commodities, such as bag, shoes, clothes, resulted in a more significant reduction. These findings indicate that the implementation of this policy has succeeded in fulfilling its objectives of controlling importation, thereby providing greater protection to domestic producers through fair tax treatment and creating a level playing field.

Indonesia’s Intangibles Transfer Pricing Regime

2025-01-30T14:15:55+07:00

Intangibles are central to the digital economy, generating significant market value and premium returns. In the pre-BEPS era, intangibles facilitated tax avoidance through profit shifting to tax havens. The post-BEPS era emphasizes intangible profit allocation based on economic ownership, contributions to DEMPE functions, and the assumption of significant economic risks. As an emerging global economy, Indonesia faces challenges in transfer pricing for intangibles and must adapt to international guidelines and reforms. Using a qualitative comparative legal method, this study compares Indonesia’s transfer pricing regime for intangibles with the OECD Transfer Pricing Guidelines, the UN Transfer Pricing Manual, and the domestic laws of the US, UK, and China. The analysis focuses on identification, analytical frameworks, income attribution, transfer pricing methods, and special considerations. Indonesia’s regime generally aligns with international best practices, offering robust guidance and frameworks. However, the regime lacks guidance on local intangibles identification, income attribution, and the provision of hard-to-value intangibles. Indonesia can further enhance its intangibles regime by adopting certain approaches from the surveyed jurisdictions.

Kebijakan Mutasi dan Kepuasan Pegawai dalam Kerangka Organization-Employee Relationship (OER)

2025-01-30T13:50:26+07:00

Employee dissatisfaction with transfer policies has a negative impact on the organization, not only because it affects employee performance but also because it forces employees to decide to leave the organization. A decline in performance and employee resignations become serious issues amid the continuously increasing tax revenue targets and the organization's inability to increase the number of employees in a short time. The issue becomes even more complicated when the employees who resign are the organization's best talents. Therefore, it is crucial for the Directorate General of Taxes (DJP) to design transfer policies that can provide satisfaction for employees. Transfer policies may not always meet employee desires. However, transfer policies can at least be designed to ensure certainty and equal treatment for all employees. The primary data sources for this study were obtained through an online survey, which employs a quantitative methodology. This study uses the Organization-Employee Relationship (OER) framework to examine the factors that influence employee satisfaction with the transfer policy within DJP using Partial Least Square-Structural Equation Model (PLS-SEM) analysis. Specifically, the objective of this investigation is to assess the impact of exchange relationship and communal relationship on employee satisfaction with the transfer policy within DJP, as mediated by three OER qualities: trust, commitment and control mutuality. The research reveals that employee satisfaction with the organization is significantly and positively influenced by employee satisfaction with the transfer policy. The satisfaction with the transfer policy is only influenced by the transactional relationship between employees and DJP when it is mediated by trust and control mutuality. Conversely, employee satisfaction with the transfer policy is directly influenced by communal relationships. This relationship is later strengthened by trust and control mutuality.

Do Prudential Regulations Influence Banks’ Tax Burden? Evidence from Indonesia

2025-07-22T09:54:29+07:00

This study examines the effect of existing prudential regulations on banks’ income tax burden, addressing an existing gap in prior literature that has rarely linked regulatory compliance with fiscal outcomes. We focus on two main prudential elements in Indonesia: the minimum capital adequacy ratio provision, which mandates a capital buffer of at least eight per cent of risk-weighted assets, and the maximum non-performing loan ceiling, which limits bad debts to less than five per cent of total disbursed loans. Using panel data of 47 banks listed on the Indonesia Stock Exchange from 2012 to 2022 and applying multiple regression estimations, this study offers novel evidence on the regulatory-tax nexus. The results show that the minimum capital buffer provision does not influence banks’ effective tax rates, whereas the maximum bad-debt ceiling has a substantial influence. Specifically, a one-percentage-point increase in the non-performing loan ratio is associated with a 0.6 to 0.8 percentage-point increase in the tax burden, reflecting the stringent requirements of tax-deductibility of bad debt. These findings highlight the critical role of prudential supervision in shaping fiscal responsibilities, as suggested by previous studies. More broadly, this study contributes to the banking and tax literature by demonstrating how financial stability regulations can influence fiscal accountability, with lessons relevant to both emerging economies and global tax practices.

Blockchain in Taxation

2025-05-21T16:38:05+07:00

The rapid evolution of digital technologies has positioned the implementation of blockchain technology in the field of taxation as a uniquely compelling and necessary research topic, given the government's need to enhance the efficiency and security of revenue collection. This paper addresses the current research landscape by presenting a comprehensive Systematic Literature Review (SLR), summarizing the diverse studies that explore the intersection of tax systems and distributed ledger technologies. Following a rigorous screening and selection process covering publications from January 2017 to October 2022, the analysis focused on 16 relevant primary studies, drawn from an initial pool of 326 articles. The synthesis of these studies reveals that the most dominant research themes concentrate heavily on the integration of blockchain for Value Added Tax (VAT), represented by six papers, and for broader general tax administration, which accounts for five papers. Despite the identified benefits—such as increased transparency and security—the review also highlights significant challenges. The most frequently cited obstacles to adoption are critical concerns over data privacy issues, high implementation costs, and the persistent oracle problem, which relates to verifying the accuracy of off-chain data submitted to the blockchain.