Facing Tax Emerging Issues in 2021 and
Strategies to Overcome
Taxation is the most vulnerable part yet the biggest contributor to Indonesia’s state budget. In analyzing taxation, there will always be opportunities and challenges amid global economic and political dynamics that are completely uncertain. The direction of the economic movement is consistent with tax performance. This is because the amount of the tax payment depends on the economic capacity of taxpayers. Consequently, the growth of tax revenues is naturally influenced by economic growth and inflation under normal circumstances.
Over the past few months, the world has been facing the COVID-19 pandemic outbreak which has resulted in an unprecedented challenge to several companies in various business sectors that make them unstable and unable to perform their operational activities as before. The impacted companies need to adjust and untighten their company regulatory and Indonesian tax policies. In response to the Novel Coronavirus (COVID-19), Indonesia’s economic condition is also weakened with the decrease of national supply and demand quantities. These caused several companies to lose most of their revenue, so they couldn’t provide any of their tax obligations.
In the middle of this distinctive situation, the Directorate of General Taxes (DGT) decides to finalize Omnibus Law as it has been long-waited after President Joko Widodo announced it as part of his term plan and initiatives. Omnibus Law, which is signed under Law Number 11 of 2020 regarding Omnibus Law On Job Creation, represents the most comprehensive economic reform that has ever been launched in Indonesia. Changes to tax laws are embedded within the enacted Omnibus Law as well coupling with the government’s plan to transform its tax administration system through various initiatives, a raft of legislative, regulatory, and administrative changes currently underway to reform the existing tax system.
Omnibus Law with all of its taxation changes and updates could bring up several issues and disputes from different dimensions. Without thorough and detailed delivery of information, the impacted industries could be more struggling than before. Therefore, The 22nd Tax Seminar and Training initiates the theme: “Facing Tax Emerging Issues in 2021 and Strategies to Overcome Disputes”. The 22nd Tax Seminar and Training will thoroughly inform and be the medium to many stakeholders in implementing these changes and updates to help companies with their business continuity. In the end, this event is expected to give a contribution in educating and giving added value to each stakeholder through edifying tax competition and informative discussion through webinar and training.