Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia

Research Article

Value Added Tax Planning on The Transfer of Outsourcing Services (Case Study: CJ Enterprise)

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  • @INPROCEEDINGS{10.4108/eai.30-10-2019.2299393,
        author={Titi Muswati Putranti and Kirana Noviawan Putri},
        title={Value Added Tax Planning on The Transfer of Outsourcing Services  (Case Study: CJ Enterprise)},
        proceedings={Proceedings of the 3rd International Conference on Administrative Science, Policy, and Governance Studies, ICAS-PGS 2019, October 30-31, Universitas Indonesia, Depok. Indonesia},
        publisher={EAI},
        proceedings_a={ICAS-PGS},
        year={2020},
        month={8},
        keywords={tax planning value-added tax taxable base outsourcing services:},
        doi={10.4108/eai.30-10-2019.2299393}
    }
    
  • Titi Muswati Putranti
    Kirana Noviawan Putri
    Year: 2020
    Value Added Tax Planning on The Transfer of Outsourcing Services (Case Study: CJ Enterprise)
    ICAS-PGS
    EAI
    DOI: 10.4108/eai.30-10-2019.2299393
Titi Muswati Putranti1,*, Kirana Noviawan Putri1
  • 1: Universitas Indoensia, Depok, West Jawa, Indonesia
*Contact email: titi.putranti@gmail.com

Abstract

The presence of two tax basis for VAT on transfer of outsourcing services allows Taxable Entrepreneur for VAT purposes to plan their tax planning. This study aims to analyzes CJ enterprise's VAT planning on the determination of a tax basis, reviews it from neutrality and efficiency principles, and cognizes the obstacles they are facing. This study used a qualitative approach with in-depth interview data collection techniques and literature study. The result shows that clients are allowed to choose between the two tax basis. VAT calculated replacement tax base because the familiarity of tax administration. CJ enterprise performs four steps of VAT planning and complies the three requirements of good tax planning. In different circumstances, CJ enterprise's VAT planning complies neutrality principle and is not conform with the efficiency principle. The obstacle CJ enterprise faces is the delay of services payment, also cause CJ enterprise to bail out payments of VAT.