TRADE TAX THROUGH ELECTRONIC SYSTEMS FOR FOREIGN DIGITAL COMPANIES BASED ON LAW NUMBER 2 OF 2020

Abstract

Trade tax through electronic systems has a considerable impact on the Indonesian economy, especially in the current era where almost everything uses digital technology. With the current state of technological advancement, governments must always update existing regulations to comply with the regulations that are currently needed. Coupled with the increasing number of foreign companies that have increasingly carried out buying and selling activities in Indonesia, it is necessary to have new policies or regulations so that regulations in Indonesia do not experience delays. However, the government does not want to be outdone by technological advances that are currently growing rapidly, so a new policy was issued in 2020, namely Law of the Republic Number 2 of 2020 concerning Determination of Government Regulation in Subtitute Law Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling Corona Virus Disease 2019 (COVID-19) and/or in The Context of Facing Threats That Endanger The National Economy and/or Financial Stability to Become an Act. In the latest regulation, there are regulations governing trade taxes through electronic systems for foreign digital companies. With the existence of a new law regulating trade taxes through an electronic system for foreign digital companies, foreign digital companies provide more income to the State of Indonesia, and this will help the Indonesian economy which is being affected by the Pandemic COVID-19. In addition, it is also important to know about the legal attempts made by foreign digital companies that do not pay their corporate taxes.