The article describes a new method/idea about taxing the income towards the digital in Indonesia during the COVID-19 Pandemic. Since social and physical distancing has fertilized the trend to conduct trading activities through the electronic system and provide a level playing field, then the policies for direct tax (income tax) in the trading activities utilizing electronic systems were issued in Law Number 2 of 2020. To obtain data and information in this study, the authors used qualitative research methods. Considering that direct tax has been regulated in Indonesian legislation, this study uses a normative juridical approach without neglecting empirical facts in developing the digital economy. The application of this regulation is assessed based on the Tax Law in Indonesia by focusing on several aspects such as legal certainty and tax jurisdiction. Based on the tax philosophy in Indonesia, Law Number 2 of 2020 is considered as lacking in providing legal certainty and policies regarding the income tax for the trading activities utilizing the electronic system. It is considered a unilateral measure. This study on income tax is relatively new in facing the rapid development of the digital economy, especially regarding a permanent physical establishment that is considered irrelevant.

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The rapid development of Over the Top (OTT) services has enabled consumers to enjoy high service quality from technology even more. Nevertheless, OTT also brings other effects for telecommunications companies in Indonesia; namely, there are legal problems and obstacles faced regarding regulation and practice of tax and non-tax for OTT business providers because these services do not have a form of cooperation with telecommunications operators. In addition, the model of policies and regulations is still uncertain regarding how the tax and non-tax imposition should be in Indonesia. This study uses a normative juridical research method emphasizing secondary data (library research) with three legal materials, namely primary, secondary and tertiary legal materials. The research includes data searching and inventory and laws and regulations related to tax and non-tax imposition for OTT services on the utilization of telecommunication infrastructure and other relevant sources. Results of the study determine the extent to which regulations on the tax and non-tax imposition govern OTT media in Indonesia to understand and find the policy and regulatory issues related to tax and non-tax imposition practices faced by OTT business actors. In addition, it also aims to find obstacles in policy formulation and stipulation of tax and non-tax regulations for OTT business actors in Indonesia. Further, it seeks to find a tax and non-tax policies and regulations model for OTT business actors in Indonesia through a service collaboration, comparative, and normative approaches. Hence, this will also open up opportunities to increase state revenue from the imposition of tax and non-tax from all OTT service providers, both national and international.

Susension of Payment (PKPU) is the time given by the law through the commercial court’s judgment where the Creditor and the Debtor are given the chance to discuss the ways to pay their debts by giving the payment plan as a whole or in partial, including if it is considered necessary to restructure the debts. It is known that there is the implementation of the peace agreement in PKPU. The parties in the implementation of the peace agreement are the Creditor and the Debtor. Moreover, it is also known that there are Preferred Creditor and Concurrent Creditor. However, in regard to the classification of the Creditors, there are several cases that show that the Creditor’s legal standing is debatable and it creates a problem during the implementation of the peace agreement in PKPU.

E-commerce poses a challenge to establishing a viable tax system.  The Indonesian Directorate General of Taxes have yet to establish a viable data collection system on the number of active e-commerce business persons and how much they earn annually.  The main question to be discussed here is how tax income regulation in Indonesia responds to e-commerce activities, taking into consideration the existing self-assessment system? The author shall attempt to answer this question by using a juridical normative approach. This research leads to one recommendation, i.e. to improve government revenue from e-commerce tax in Indonesia a rule should be established obligating e-commerce actors to obtain certificate of reliability (trust mark). This will improve government and public monitoring capability.