How Taxpayers Behavior takes Advantage in Tax Incentives Policy

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Ida Farida Adi Prawira ◽  
Fitri Anggrayni
Keyword(s):  
Value Added ◽  
Tax Incentives ◽  
The West ◽  
West Java ◽  
Regional Office ◽  
Tax Rate ◽  
Tax Incentive ◽  
Incentive Policy ◽  
National Economic ◽  
Incentive Policies

Tax incentives Preliminary Refund of Value Added Tax (VAT) is one of the government's tax relaxation facilities in the context of national economic recovery. This study aims to observe the effect of the incentive for the Preliminary Return of VAT on taxpayer behavior in dealing with this tax incentive policy. This is qualitative research using descriptive approach. The data were collected by in-depth interviews with 38 taxpayers in the West Java I Directorate Jenderal of Taxes (DJP) Regional Office and Banten area, which were then processed using the nVivo application. The result shows that several factors contribute to taxpayers' behavior to propose the Tax Incentives Preliminary Refund of VAT. The factors are taxpayers more require tax incentives policy to reduce the tax rate of VAT, or there will not be an examination. The Implication of this research is how the Directorate Jenderal of Taxes (DJP) can arrange other tax incentive policies that can give more easiness to the taxpayers in the future. This research is limited only to the West Java I DJP Regional Offices and Banten. Also, the number of taxpayers interviewed is only a few due to pandemic, so it does not represent the field's facts.

scholarly journals INSENTIF PAJAK DALAM MERESPONS DAMPAK PANDEMI COVID-19 PADA SEKTOR PARIWISATA

2020 ◽  
Vol 2 (1) ◽  
pp. 124-137
Author(s):  
Nafis Dwi Kartiko
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Tax Incentives ◽  
Easy Access ◽  
Business World ◽  
Social Distancing ◽  
Tax Incentive ◽  
Incentive Policy ◽  
Tourism Sector ◽  
The Government

ABSTRAKThe social distancing and physical distancing policies due to the COVID-19 pandemic have disrupted the value chain of the business world, causing various impacts on the Indonesian economy, resulting in shocks in sectors in the economy. One of the sectors experiencing the worst shocks is the tourism sector. The policy pursued by the government to reduce these shocks is by providing an economic stimulus in the form of tax incentives. The tax incentives provided have not been able to accommodate all the needs of the Tourism Business in facing the COVID-19 pandemic. This encourages the author to find out the needs of the tourism sector in facing the negative impacts of the COVID-19 pandemic, the benefits of tax incentives in the tourism sector, and alternative tax incentive policy solutions to overcome economic problems in the tourism sector due to the COVID-19 pandemic. This research uses qualitative research methods with the type of library research. The results of this study indicate that there are two needs of the tourism sector that have not been responded to in the tax incentive policy by the government, namely support to increase demand and consumption, and easy access to business credit. The author at the end of the study recommends providing value-added tax incentives to increase demand and consumption, and tax incentives for platforms and lenders in fintech lending for easy access to business credit. Kebijakan social distancing dan physical distancing akibat pandemi COVID-19 menimbulkan gangguan pada rantai nilai dunia usaha sehingga menyebabkan berbagai dampak pada perekonomian Indonesia yang berakibat timbulnya goncangan pada sektor-sektor dalam perekonomian.  Salah satu sektor yang mengalami goncangan terparah adalah sektor pariwisata. Kebijakan yang ditempuh oleh pemerintah untuk mengurangi goncangan tersebut adalah dengan cara memberikan stimulus ekomoni berupa insentif pajak. Insentif pajak yang diberikan ternyata belum dapat mengakomodir semua kebutuhan Usaha Pariwisata dalam menghadapi pandemi COVID-19. Hal tersebut mendorong penulis untuk mengetahui kebutuhan sektor pariwisata dalam menghadapi dampak negatif akibat pandemi COVID-19, manfaat insentif pajak pada sektor pariwisata, dan alternatif solusi kebijakan insentif pajak bagaimana yang dapat untuk mengatasi masalah ekonomi pada sektor pariwisata akibat pandemi COVID-19. Penelitian ini menggunakan metode penelitian kualitatif dengan jenis penelitian kepustakaan. Hasil penelitian ini menunjukkan bahwa terdapat dua kebutuhan sektor pariwisata yang belum direspons dalam kebijakan insentif pajak oleh pemerintah, yaitu dukungan untuk menaikkan permintaan dan konsumsi, serta kemudahan akses kredit usaha. Penulis pada akhir penelitian merekomendasikan untuk diberikannya insentif pajak pertambahan nilai untuk menaikkan permintaan dan konsumsi, dan insentif pajak untuk platform dan pemberi pinjaman dalam fintech lending untuk kemudahan akses kredit usaha.

scholarly journals Tax Incentive Policy for Geothermal Development: A Comparative Analysis in ASEAN

2020 ◽  
Vol 9 (1) ◽  
pp. 53-62
Author(s):  
Mohammad Zainul Abidin ◽  
Haula Rosdiana ◽  
Roy Valiant Salomo
Keyword(s):  
Power Plants ◽  
Lao Pdr ◽  
Tax Incentives ◽  
The Philippines ◽  
Investment Climate ◽  
Tax Incentive ◽  
Asean Member ◽  
Incentive Policy ◽  
Binary Cycle ◽  
Incentive Policies

This paper examines tax incentive policies in geothermal industries in ASEAN to better understand the development of geothermal industry investment in the ASEAN Member States (AMS) using a qualitative method. The results indicate that tax incentive policies have supported the investment climate and the development of geothermal industries in the AMS. Geothermal investments and production capacities in AMS have increased significantly. AMS that provide geothermal tax incentives include Indonesia, Lao PDR, the Philippines, Thailand and Vietnam. The performance of geothermal tax incentive policies is reflected in the level of utilization of geothermal potential, which is higher in states that provide greater tax incentives. The results also indicate that geothermal power plants in AMS use dry steam, flash and binary cycle technologies with flash plants being the most common. Results suggest that the future development of geothermal energy in AMS will be related to the tax incentive policy and investment climate in those states. Furthermore, the granting of various types of tax incentives should be focused on the initial investment in geothermal development. ©2020. CBIORE-IJRED. All rights reserved

scholarly journals Tax incentive policy and firm performance: evidence from Vietnam

2020 ◽  
Vol 17 (2) ◽  
pp. 277-296
Author(s):  
Trinh Quoc Trung ◽  
Nguyen Van Tan
Keyword(s):  
Firm Performance ◽  
Tax Incentives ◽  
Real Income ◽  
Operating Efficiency ◽  
Tax Incentive ◽  
Incentive Policy ◽  
Comparison Approach ◽  
Managerial Implications ◽  
Incentive Policies ◽  
The Impact

This paper aims to assess the impact of the tax incentive policy on firm performance after privatization in Vietnam. Using research data of 260 privatized enterprises in Vietnam, this study sheds light on whether tax incentive policies can help improve firm performance after privatization. The paper utilizes a pre-post comparison approach proposed by Megginson, Nash, and Van Randenborgh (1994). The research results reveal that privatized enterprises with tax incentives have improved profitability (ROA, ROE, ROS) and operating efficiency (NIEFF) and reduced leverage after privatization. A statistical reduction in the number of employed and an improvement in output (real income) after privatization are not observed. Besides, there is no statistical evidence proving that privatized enterprises have experienced significant changes in standard deviations of firm performance measures after privatization in Vietnam. Given significant improvements in the profitability of post-privatized enterprises with tax incentives, the authors propose some managerial implications for the Vietnamese government, investors and non-privatized state-owned enterprises (SOEs).

scholarly journals Assistance in reporting individual tax returns after the tax incentive policy in the midst of the Covid-19 pandemic

2021 ◽  
Vol 6 (8) ◽  
pp. 1388-1394
Author(s):  
Umi Nandiroh ◽  
Hariri Hariri
Keyword(s):  
Community Service ◽  
Business Students ◽  
Tax Incentive ◽  
Incentive Policy ◽  
Tax Returns ◽  
Directorate General ◽  
Incentive Policies ◽  
The Way

The tax incentive policy in the midst of the Covid-19 pandemic has had an impact on changing the way the year-end tax calculation and annual tax returns are filled out. In fact, many taxpayers do not understand how to calculate and report annual taxes. Therefore, this community service is intended to provide solutions to the difficulties experienced by taxpayers, through assistance in reporting individual tax returns after tax incentive policies. This activity is entitled 'TC Mengabdi'. TC Mengabdi recruits Unisma Faculty of Economics and Business students with certain criteria. TC Serving members are selected and briefed according to the standards of the Directorate General of Taxes, before being given field assignments to provide socialization and education to taxpayers. The TC Serving team is stationed at KPP Batu and the Unisma Tax Center. This activity has served and assisted around 4,000 taxpayers in Malang Raya. Through the TC Serving program, taxpayers are greatly assisted in fulfilling their tax obligations, starting from calculating, paying, and reporting taxes.

scholarly journals IMPLEMENTASI INSENTIF PAJAK UMKM DI ERA COVID-19 DI KECAMATAN GEDANGAN KABUPATEN SIDOARJO

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Alfi Huurin Iin ◽  
Septrian Jihan Aulia Fistabella ◽  
Adellia Nanda Savira ◽  
Kalvin Edo Wahyudi
Keyword(s):  
Income Tax ◽  
Tax Incentives ◽  
Significant Decline ◽  
Point Of View ◽  
Economic Point ◽  
Tax Incentive ◽  
Incentive Policy ◽  
Ministry Of Finance ◽  
The Government ◽  
The Impact

It is known that the people's economy has experienced a significant decline due to the Covid -19 Pandemic which has spread in various regions in Indonesia. From an economic point of view, we found that there was a decrease in income felt by UMKM actors, one of which was in the Gedangan Sub-District, Sidoarjo District which was caused by the Covid-19 pandemic. So that we are interested in examining how the efforts made by the Government through the Ministry of Finance regarding Final Income Tax Incentives to deal with the decline in income faced by UMKM’s. This study aims to determine how the implementation of the Final PPh Tax Incentive policy for UMKM’s during the current Covid-19 pandemic and to find out how the impact felt by UMKM’s regarding the Final Income Tax incentives issued by the Indonesian Minister of Finance. The method we use in this research is descriptive qualitative with data collection techniques using interviews and observations. The results of this study indicate that the tax incentive policy can not be felt by UMKM actors in Gedangan District, this is due to the lack of socialization provided, resulting in their lack of knowledge about this policy and what conditions they must have to get tax incentives issued by the Ministry of Finance.

scholarly journals Analysis of the Participation of Micro, Small, and Medium Enterprises (MSMEs) Taxpayers in Utilizing Tax Incentives Affected by the COVID-19 Pandemic

2021 ◽  
Vol 5 (1) ◽  
pp. 71
Author(s):  
Imam Agus Faisol ◽  
Tito IM. Rahman Hakim
Keyword(s):  
Small And Medium Enterprises ◽  
Financial Burden ◽  
Value Added ◽  
Tax Incentives ◽  
Incentive Scheme ◽  
Tax Incentive ◽  
Medium Enterprise ◽  
The Government ◽  
Medium Enterprises ◽  
Depth Interviews

This study aims to assess the effectiveness of the COVID-19 tax incentives that the government has issued. It focused on Micro, Small, and Medium Enterprises (MSMEs) taxpayers to participate in COVID-19 tax incentives. Using a qualitative method, this study used in-depth interviews with 2 informants who were a tax consultant and a small-medium enterprise accountant. The findings show that the effectiveness of the COVID-19 tax incentive is still lacking, and it is in line with the participation of MSMEs that is still low in utilizing tax incentives. The low participation of MSMEs in utilizing tax incentives can be seen from the data, which shows that after 5 months of running the program, out of around 2.3 million MSMEs, only 200,000 have taken advantage of this facility. The tax consultant states that the scheme that has been implemented in mitigating the financial burden of MSMEs is not effective for the object of incentives in not substantial. The informant suggests incentives to cover value-added tax also. The government is expected to create a new and better incentive scheme. The new incentive scheme is also to provide an equilibrium of responsibility for both government and society. This paper contributes theoretically by examining new types of tax incentives, namely COVID-19 tax incentives, and helping policymakers make better tax incentive schemes in the future.

scholarly journals Kebijakan Insentif Pajak Kendaraan Bermotor Selama Masa Pandemi Corona Virus Disease 2019

2021 ◽  
Vol 4 (3) ◽  
pp. 931
Author(s):  
Dhimam Zidny Siradj
Keyword(s):  
Motor Vehicle ◽  
Virus Disease ◽  
Human Life ◽  
Tax Incentives ◽  
Provincial Government ◽  
Motor Vehicles ◽  
Tax Incentive ◽  
Incentive Policy ◽  
The Government ◽  
Administrative Sanctions

AbstractAs a result of the covid-19 pandemic, it has an impact on all sectors of human life in the world, which causes changes in human activities that cause various problems, one of which is in the economic field. In response to this, the government issued Regulation of the Minister of Finance Number 86 of 2020 concerning Tax Incentives for Taxpayers affected by the Covid-19 Pandemic. The East Java Provincial Government itself followed up with the issuance of the Governor of East Java Decree No. 188/394/KPT/013/2020 to become the implementing regulations. In this case, the East Java Provincial Government made a policy of exempting administrative sanctions on motorized vehicle taxes, free from transfer of motor vehicle names to deductions on motor vehicles during the Covid-19 pandemic.Keywords: Covid-19 pandemic; Tax Incentive Policy; Economy.AbstrakAkibat dari adanya pandemi covid-19 berdampak pada segala sektor kehidupan manusia di dunia yang menyebabkan perubahan aktivitas manusia yang menimbulkan berbagai masalah salah satunya adalah dalam bidang ekonomi. Untuk merespons hal ini pemerintah mengeluarkan Peraturan Menteri Keuangan Nomor 86 Tahun 2020 tentang Insentif Pajak Bagi Wajib pajak terdampak Pandemi Covid-19. Pemerintah Provinsi Jawa Timur sendiri menindaklanjuti dengan dikeluarkanya Keputusan Gubernur Jawa Timur No. 188/394/KPT/013/2020 guna menjadi aturan pelaksanaanya. Dalam hal ini Pemerintah Provinsi Jawa Timur membuat kebijakan membebaskan Sanksi Administratif pajak kendaraan bermotor, bebas bea balik nama kendaraan bermotor hingga potongan pokok pajak pada kendaraan bermotor dalam masa pandemi covid-19. Kata Kunci: Pandemi Covid-19; Kebijakan Insentif Pajak; Ekonomi.

scholarly journals The Effect of Tax Incentives Practices on Sustainability of Micro, Small and Medium Enterprises in Ethiopia During the Outbreak of Corona Virus Pandemic

2020 ◽  
Author(s):  
Kanbiro Deyganto Orkaido ◽  
Bekele Youna Beriso
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Incentives ◽  
Primary Data ◽  
Positive Contribution ◽  
Tax Rate ◽  
Tax Incentive ◽  
Tax Allowance ◽  
Accelerated Depreciation ◽  
Medium Enterprises ◽  
Tax Holiday

Abstract Purpose: The aim of this study was to identify the effect of tax incentive practise on sustainability of MSMEs during outbreak of corona virus pandemic in Ethiopia. Design/methodology/approach: In order to achieve this objective, the researchers have employed quantitative research approach with explanatory research design in which six hypotheses have been tested. The primary data was collected from 300 respondents using structured questionnaires. Multiple regression model was employed to identify the effect of tax incentives on sustainability of MSMEs in Ethiopia. Findings: According to the regression analysis, this study revealed that tax holiday, tax allowance, reduction in tax rate, accelerated depreciation, loss carry forward and tax exemption have positive and statistically significant effect on the sustainability of the MSMEs. Based on the finding of the study was concluded that the existence of tax incentive practice has positive contribution to sustainability of the micro, small and medium sized enterprise.Research limitations/implications: The current study was geographically focus on Ethiopia by considering the micro, small and medium sized enterprises sector. The subject wise was focused on the effect of the tax incentives:(tax holiday, tax allowance, tax exemption, and accelerated depreciation, reduction in tax rate, and loss carry forward) and on the sustainability of MSMEs. The study used primary data which is limited to a year of 2020. It might be improved in the future if other researchers incorporate large firms in the country and uses secondary data for analysis. Practical implications: To survive, micro, small and medium scale enterprises need the support from the government in the form of tax incentives. The role of tax incentives in enhancing the growth of micro, small and medium sized enterprises is very significant on the sustainability of MSMEs as well as the economy as a whole. Hence, the findings and recommendations of the current study might serve as an ingredient and be informative to the policy makers on MSMEs sector. It might also give a general insight to the policy makers, academician and professional groups of society and the public at large with regard to the role of effect of tax incentives on the sustainability and growth of MSMEs during outbreak of coronavirus.Originality/value: This study contributes to empirical evidence about the effect of tax incentives practices on sustainability of micro, small and medium enterprises in Ethiopia by considering tax incentive practice in terms of tax holiday, tax allowance, reduction in tax rate, accelerated depreciation, loss carry forward and tax exemption. As tax incentives theories supported the findings of this study, we have concluded that tax incentive practices provided by government have positive contribution for the sustainability and growth of micro, small and medium sized enterprises in Ethiopia

scholarly journals Effect of Oregon’s Axle-Weight-Distance Tax Incentive

2000 ◽  
Vol 1732 (1) ◽  
pp. 63-69 ◽  
Author(s):  
Anthony M. Rufolo ◽  
Lois Bronfman ◽  
Eric Kuhner
Keyword(s):  
Statistical Analysis ◽  
Statistical Data ◽  
Tax Incentives ◽  
Economic Incentive ◽  
Major Determinant ◽  
Weight Class ◽  
Structured Interviews ◽  
Tax Rate ◽  
Tax Incentive ◽  
Regulatory Constraints

Oregon’s weight-mile tax was amended in 1990 to provide for a lower tax rate for trucks weighing more than 36 320 kg (80,000 lb) to which axles were added. The additional axles within a weight class reduce the amount of road damage. The tax break was largely based on equity considerations, since trucks within a weight class tend to do less road damage if they have more axles. However, the tax reductions also created an economic incentive to add axles and thus reduce road damage. Whether the tax break actually led to an increase in the number of axles within weight classes and a reduction in the amount of road damage is investigated. Statistical data indicate that a small increase occurred in the number of axles in most weight classes and a large increase occurred in mileage by the heaviest trucks with the most axles. These increases reduced the damage per ton shipped on trucks subject to the axle incentive, but to determine if this was due to the weight-mile tax is not possible. A series of structured interviews supplemented the statistical analysis and indicates that the tax incentive is not a major determinant of truck configuration. One reason for this is that regulatory constraints, particularly weight limits, limit the effectiveness of the tax incentives.

The Diffusion of State Tax Incentives for Business

2015 ◽  
Vol 45 (3) ◽  
pp. 334-363 ◽  
Author(s):  
Stephanie Leiser
Keyword(s):  
Tax Competition ◽  
Event History Analysis ◽  
Tax Incentives ◽  
Tax Credits ◽  
Empirical Literature ◽  
Tax Rates ◽  
Tax Incentive ◽  
History Analysis ◽  
State Tax ◽  
Incentive Policies

Tax competition scholars are increasingly recognizing that states compete with each other not only by manipulating tax rates but also by adopting tax incentives. However, there is a comparative lack of empirical literature exploring why states adopt different types of tax incentives. This article draws on the literatures on tax competition and policy diffusion to develop hypotheses about what factors motivate states to adopt business tax incentives, paying particular attention to the influence of other adopting states. It uses event history analysis methods to test hypotheses regarding the adoption of four state tax incentive policies: investment tax credits, apportionment formula changes, research and development tax credits, and job creation tax credits. Regression results show that factors that influence adoption decisions are largely inconsistent across the four incentive types. However, analyses of duration dependence find evidence consistent with the idea that states are “racing to the bottom.”

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