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Perpajakan Internasional
Double Taxation
Territorial vs World wide Income coverage
Double taxation inhibits economic activity
Coverage
Source and Residence Jurisdiction
Types of jurisdictional conflicts
Methods of elimination and reduction of double
taxation
Economic double taxation
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Rationale
Source jurisdiction: policy reason for taxing income that has a
source in your country stems from the benefit theory of
taxation. It implies that non-resident taxpayer needs to have
some sort of presence in the country.
Doctrine of economic allegiance: to look to where the income
or wealth is produced, in a physically or economic sense, i.e.
to ascertain the origin of the income or wealth produced. >>
Presence test
Residence jurisdiction: income is taxed because of a nexus
between the country and the person (but not the activity)
who earns the income
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Comparison
Deduction Credit Exemption
Foreign source income 100 100 100
Foreign tax 40% 40 40 40
Deduction for Foreign tax 40 nil Nil
Net domestic income 60 100 Nil
Domestic tax before credit 50% 30 50 Nil
Less foreign tax credit nil 40 Nil
Final domestic tax 30 10 Nil
Total tax 70 50 40
Exemption method
Residents of country R are taxed only on
domestic income i.e income derived from
country R. Country R does not tax foreign
sourced income.
Full exemption
Exemption with Progression
The most administratively efficient method for
double taxation relief
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Deduction Method
The least generous method of granting relief
The effect: residents earning foreign source
income and paying foreign income taxes on
the income are taxable at a higher combined
tax rate than the rate applied to domestic
source income.
Bias in favor of domestic investment over
foreign investment
Deduction method
Residents are allowed a deduction from their
assessable income, in calculating the tax
liability in their state, for foreign taxes paid on
foreign income
It does not completely eliminate the
residence-source conflict.
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Exemption method
Completely eliminates residence-source international
double taxation
Exemption with progression. The foreign income,
although exempt, is taken into account in
determining the rate of tax applicable to the
taxpayers other taxable income.
Encourages resident taxpayers to invest abroad in
countries with lower tax rates.
Relatively simple to administer and is effective in
eliminating international double taxation.
Credit Method
Foreign taxes paid by a resident taxpayer on foreign source
income generally reduce domestic taxes payable by the
amount of the foreign tax.
Problems: the foreign taxes which are creditable, country-
country or overall basis, rules for determining the source of
income and deduction, and the inclusion of the underlying
income in case of dividend.
Distribution of taxes between the source country and resident
country.
Completely eliminates source-residence conflict
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Credit method
Full credit method
Ordinary credit method
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Credit Method
The credit method may have the effect of
discouraging domestic corporation that have earned
profits abroad through foreign affiliates from
repatriating these profits as dividend distribution.
Accrual taxation such as that used under the CFC
(controlled foreign corporation) rules eliminates the
deferral of the resident country tax on the foreign
source income earned by residents through foreign
affiliates.
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Treaty aspects
The credit and exemption methods are
authorized by the OECD and UN model
treaties.
The deduction method is not authorized
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Allocation of Expenses
The need for allocating a proper portion of the
expenses incurred by its taxpayers between their
foreign source gross income and their domestic
source gross income.
Under the exemption method, expenses incurred by
the taxpayer to earn the income should not be
deductible.
Rules for attributing expenses to foreign source
income: tracing approach and apportionment
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Means to overcome
Exemption of income from taxation at the corporate level (as
in Estonia)
Exemption at the shareholder level (as in Greece and Latvia)
Full integration of corporate profits and shareholder income
(in the same way as partnership income is attributed to
individual partners)
Full imputation of corporate profits to shareholders (as in
Australia and NZ).
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Ketentuan Domestik
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BUT
MULAI :
SAAT MELAKUKAN USAHA/KEGIATAN MELALUI BUT DI INDONESIA
BERAKHIR :
SAAT TDK LAGI MENJALANKAN USAHA/KEGIATAN MELALUI BUT DI
INDONESIA.
Pasal 2A UU PPh
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UNTUK MENJALANKAN
USAHA ATAU KEGIATAN
DI INDONESIA
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Usaha/kegiatan BUT
Harta yang dimiliki/dikuasai BUT
Penghasilan dari
Usaha/kegiatan
Penghasilan kantor Penjualan barang-barang
Pemberian jasa
pusat dari
Di Indonesia
Penghasilan yg
Sepanjang ada hubungan
tersebut dalam ps. 26 efektif antara BUT
yg diterima atau dengan harta/kegiatan
yang memberikan
diperoleh kantor penghasilan
pusat
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BUT DI ========== PT D di
KANTOR
INDONESIA Indonesia
PUSAT DI BARANG LISTRIK
LN
PT C di
LABA
Indonesia
BARANG LISTRIK
KANTOR PUSAT BUT DI PT F di
KONSULTAN INDONESIA ==========
DI LN Indonesia
JASA KONSULTASI
FEE
PT E di
JASA KONSULTASI Indonesia
X. Inc BUT
di
Di luar Indonesia
Indonesia
Perjanjian/
Lisensi penggunaan
Merk X Inc
Royalti
PT Y
di
Indonesia
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Sehubungan dengan:
Penghasilan sebagaimana
Usaha/kegiatan tsb. dalam pasal 26 jika
Penjualan barang terdapat hubungan efektif
Pemberian jasa antara BUT dengan harta/
kegiatan yang memberikan
Yang sejenis dgn yg penghasilan
Dijalankan BUT di
Indonesia
Besarnya ditetapkan
Dirjen Pajak
Royalti/imbalan sehubungan
Pembayaran kepada dengan penggunaan harta,
Paten & hak lainnya
Kantor Pusat yang
Imbalan sehubungan dgn
tidak boleh dibebankan jasa manajemen & jasa lainnya
sebagai biaya Bunga,kecuali bunga yang ber-
kenaan dengan usaha perbankan
Royalti/imbalan sehubungan
dengan penggunaan harta,
Bukan sebagai penghasilan BUT, Paten & hak lainnya
pembayaran dari Kantor Imbalan sehubungan dgn
Pusat berupa jasa manajemen & jasa lainnya
Bunga,kecuali bunga yang ber-
kenaan dengan usaha perbankan
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BUT
WP BUT wajib memberitahukan ke KPP
mengenai bentuk penanaman yang dilakukan
Tarif 20% atau tarif P3B (branch profit tax)
Bila Penghasilan BUT dikenakan PPh Final PKP
yang dihitung berdasarkan pembukuan yang
sudah dikoreksi fiskal dikurangi dengan PPh
yang bersifat final
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