Income Tax and VAT Issues Concerning Lease after IFRS 16 Convergence in Indonesia

Abstract

This study analyzes income tax and value-added tax (VAT) issues on lease transactions after IFRS 16 convergence in Indonesia into PSAK 73. The data collection is through in-depth interviews and literature review. We interviewed informants selected purposively. We also used secondary data from literature studies to enrich the analysis. This study concludes that the tax authorities need to make tax policies that can provide legal certainty. The new tax regulation needs to accommodate a more precise direction of the policy. Among the three available options, this study favors realization taxation as a more appropriate option for Indonesia's current situation, other than mark-to-market or hybrid taxation. To narrow the practical gap between accounting and tax, this study recommends that tax authorities initiate a discussion with relevant stakeholders to prevent potential tax disputes in the coming years. Tax authorities need to notice some issues with withholding tax when the lessee records interest expenses as well as transfer/delivery issues causing VAT payable when the lessee recognizes a right-of-use asset.

Tax Implications on Financial Instruments Resulting From IFRS 9 Adoption in Indonesia

“…The studies above show numerous works investigating IFRS 9 adoption, but only a few discuss tax implications arising from the IFRS 9 adoption. However, the studies above do not apply to the Indonesian context since Indonesian tax rules differ from those of the above studies' locus (Saptono and Khozen, 2021). Because of the significant effects of IFRS 9 adoption, as found in the case of Nigeria, Indonesian policymakers must have a plan to mitigate the consequences of the implementation of PSAK 71 adopted from IFRS 9.…”

Penerapan PSAK 73 atas Profitabilitas, Struktur Modal dan Tangibility pada Perusahaan

“…Penelitian tersebut mendeskripsikan implementasi PSAK 73 pada 115 perusahaan listed di Bursa Efek Indonesia. Saptono & Khozen (2021) mengulas dampak penerapan PSAK 73 atas pajak penghasilan badan dan pajak pertambahan nilai atas transaksi sewa perusahaan. Sejalan dengan penelitian tersebut, Ulhaq (2021) mengulas dampak penerapan PSAK 73 pada pajak penghasilan badan dan koreksi fiskal yang timbul pada perusahaan yang melakukan sewa.…”

Dampak Penerapan PSAK 73 Terhadap Nilai Perusahaan Di Indonesia: Aset Hak Guna Dan Utang Sewa

“…(Fauzi & Yustiani, 2021) mengulas fundamental keuangan perusahaan akibat implementasi PSAK 73 pada 115 perusahaan listed di Bursa Efek Indonesia. Penelitian lainnya mengulas implementasi PSAK 73 terkait dengan (Saptono & Khozen, 2021;Ulhaq, 2021) mengulas dampak penerapan PSAK 73 atas pajak penghasilan badan dan pajak pertambahan nilai (Saptono & Khozen, 2021) atas transaksi sewa perusahaan. Sejalan dengan penelitian tersebut, (Ulhaq, 2021) mengulas dampak penerapan PSAK 73 pada pajak penghasilan badan dan koreksi fiskal yang timbul pada perusahaan yang melakukan sewa.…”