Outline: I.

Developing digital digital era

A. What is the digital era
B. How easy is it to live in the digital age
C. digital era influences on the economy as a whole

II. the impact of the digital era on the Indonesia economy

A. Make changes on people’s behaviour
B. Contribution of Tax revenue
C. Concern for the tax apparatus

III. The challenge for taxation in Indonesia

A. Difficult to detect transactions
B. Government effort

Concluding : The digital age brings challenges to the world of taxation in

Indonesia.

TAX IN DIGITAL ERA

The digital age is a time when all humans can communicate with each other so closely even
though they are far apart. We can quickly find out certain information even real time.
According to Wikipedia, the digital era can also be called globalization. Globalization is the
process of international integration that occurs because the exchange of world views,
products, thoughts, and other aspects of culture are mostly caused by the advancement of
telecommunications, transportation and internet infrastructure. Many experts have expressed
opinions about globalization, they expressed their opinions in accordance with their
respective views. Some of them think that globalization is a social process, there are also
those who consider it as a historical process or a natural process that will make the nations of
the world more bound to one another to realize a new form of order regardless of
geographical, economic and community culture that has developed in each country,
In the above sense, globalization has a relationship with increasing the interrelationship and
dependence between nations and between humans throughout the world so that the
boundaries between regions become biased.
1. Easy Communication
Quoted from the New York Times, Thomas L Friedman in The World is Flat divides
globalization into 3 stages, namely globalization 1.0, globalization 2.0 and globalization 3.0.
Now, now we have entered the era of globalization 3.0 where human life is surrounded by
digital technology. All humans are connected with the internet.

Especially with the emergence of email and social media like now.

We can send mail via email quickly,

We can disseminate information to the public via Twitter and Instagram,
Can greet each other with old friends through Facebook,
We can send news with family via video call on Line or Whatsapp,
etc.
Everything seems to be connected without any time and territory limitations.

2. Mobile and Flexible

The digital age is a time when everything is easy and has no limits. You can do anything on
mobile. Even now there are many events that do not require participants to come. Only need
online media, they can do everything easily.

There are many online courses that you can follow, there are even some universities that
provide online lecture facilities. Students do not need to gather in a class listening to
lecturers' explanations. They only need internet access and an information system so they can
chat like a lecture class. If you want to have a discussion, you can take advantage of the
Google Hangout.

In the field of economics and banking, you can use a Virtual Account to make payments.
Similarly, when ordering cheap hosting and domains at DomaiNesia. You can use the Virtual
Account feature. Easy, simple and without having to confirm payment.

3. The Internet is More Powerful than Credit

Can you really run out of credit if you run out of data packages? Today, the internet is more
powerful than credit. The digital age is one sign of the internet's progress. Children nowadays
even prefer not to eat than there is no internet access. If the data package runs out, they will
tend to look for a wifi connection to do all activities. Social media and online games have
become a lifestyle.

4. Easy Shopping
For those of you who like to shop, it seems like living in a digital era is a paradise of the
world. You can choose items without having to bother going to the store or to the mall. With
just a smartphone or laptop screen and internet, you can choose items as needed. Starting
from basic needs, fashion, souvenirs, paying for electricity, paying credit, paying train tickets,
paying data packages to buying online games. You can select items and prices according to
wallet conditions. The payment process is also easy. You don't have to have cash in cash if
you want to shop for expensive products. Just transfer it according to the nominal, and the
item will be delivered directly to the place.

5. No need to be complicated
Living in the digital age, afraid of getting lost? Hmmm…. maybe you don't know the name
GPS technology. Right now, you can travel anywhere without having to fear getting lost by
using a GPS application like Google Maps. You only need to follow the route shown in the
application. You can also determine the estimated travel time, the nearest route, and choose
which road is congested. You can also search for nearby public facilities such as gas stations,
ATMs, restaurants and so on.

Digital era facilitates every transaction in economic activities. By capitalizing on the internet,
everyone will easily reach the goods and services he wants. along with the number of
marketplaces both domestically and abroad. People will be faced with many choices for
goods and services so that the ability to buy will increase so that it will increase state
consumption. Then with the advancement of digital era one will easily find choices from
lowest to highest so that if someone needs an item to support their work, they will be easier
buy with the help of the internet so that saving energy and travel costs will also increase
investment. Digital era brings advantages for exporters and importers with digital era, they
will easily exchange information such as sending pictures of desired items and comparing
with other places also seeking information on how to improve the quality of export goods so
that exports increase. Given that Gross Gross Domestic is the same as Consumption +
Investment + Government Purchase + Net export. So that the digital era can increase state
revenues and consumption, imports of imported goods and exports are subject to good taxes
on value added tax, income tax, import duties, etc. so that it will increase state income

II.
The digital era makes behavioral changes in people's lives. One example of this
shift is the habit of buying goods, ticketing, transfering, and various transactions that are
currently so easy to use internet media as people prefer to travel with online transportation,
online cleaning services, and buy food from online.
The era of digital era contributes significantly to Gross Domestic Product (GDP)
and the number of jobs in Indonesia. With the digital era, people easily market their goods
and don't need physical stores like the market in general. digital era provides benefits by
providing additional economic people who sell goods and services. That should be able to
increase tax revenue for Indonesia
Consumers of internet users are very spoiled, can save energy, costs, time, can even
enjoy a variety of product choices. However, the other side is how the taxation world is made
dizzy to be able to capture the various electronic transactions in the virtual world. It is this
digital economy era that actually raises concerns as well as great expectations for the tax
apparatus (tax authorities), because in reality goods flow transactions are increasing but are
difficult to detect and there is no evidence.
Weak infrastructure and information technology that can capture activities in online
transactions even though it is a potential tax revenue. Also, the constraints of the budgeting
system in the APBN, such as the up-to-date mechanism of goods such as software, are
needed, while only a minimum of one year will be realized due to procedural budget issues.
This is of course increasingly difficult for the tax authorities to be able to fulfill and balance
the sophistication of the targeted tax object
First, there is already a government that is more focused on filtering taxes from
online companies, as a tax base.
The tax potential that can be taken from this virtual world service provider company
is really very big. All instruments must hide. Try to compare it with the policy used by
Google for taxes that increased enormously from only 1.3 million to £ 130 million.
In Indonesia, Google has been contributing as a taxpayer. However, it is only
limited to receipt of Income Tax (PPh) from Google employees. While the tax on Google's
huge corporate income tax is not detected. Unfortunately in Indonesia not only Google
operates, there are still many other internet service providers. Just say Yahoo, WhatsApp,
Instagram, Line, Facebook, and others.
Then one other solution, the Indonesian government must be more active with the
G-20 countries that are working with the OECD to discuss BEPS and ways to overcome it.
For this reason, the government needs to continue to convey information that is appropriate
and can be applied easily. This BEPS can be flexible while still considering the condition and
readiness of infrastructure and information technology in each country, which will not be
detrimental in implementing it.
Second, the government can formulate regulations that can enable companies to
benefit from Indonesia. Like some countries, as the Chinese government has done with
Google. Likewise also formed the National Payment Gateway (NPG) and its development for
trade transactions (e-commerce), both domestically and abroad. Followed by provisions about
planning (tax planning) that is accurate, tax avoidance (tax avoidance), and anti tax avoidance
which are Anti Special Avoidance Rules (SAAR) or Anti General Avoidance Rules (GAAR)
which are made in more detail.
Third, the need for a legal umbrella that can provide more space and authority to the
tax authorities to take action against tax evaders.
With the digital era, large online transactions can give hope of large tax revenues for
Indonesia but on the other hand it can bring disastrous if no effective efforts have been found
in tax collection which are currently being faced by Indonesia. Indonesia must focus more on
this and provide the best solutions