Is It Necessary for Indonesia to Modify Its Corporate Tax Payment Model? A Comparative Study
Abstract
This study aims to suggest recommendations for Indonesia and other low-tax-ratio countries to enhance their corporate taxation system, specifically focusing on the tax installment system. While various research explored taxation, only limited attention was directed to the effectiveness of the corporate tax payment system. This paper uses a literature review from authoritative websites, related news, existing studies, and interviews with tax professionals. Data were analyzed by a comparative analysis of the corporate tax payment model between developing and developed countries that implement a self-assessment system; results from interviews were also utilized to strengthen the comparative findings. It is necessary to modify the tax installment regulations for Indonesian corporate taxpayers to improve their compliance, resulting in a subsequent influence on the tax ratio. The outcomes of this study consist of several insights for researchers and tax authorities about taxation system that have potential to be implement in other low-tax-ratio countries, particularly in Indonesia, to increase the tax ratio and tax revenue. This study utilizes both developing and developed countries as samples for a comparison focusing on countries with higher tax ratios, aiming to achieve optimal results.
Keywords: corporate taxpayer, installment tax, tax refund, self-assessment system, tax ratio.
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