Article Sidebar

Download
PDF
Statistic
Read Counter : 312 Download : 252

Main Article Content

Abstract

This study addresses a significant issue within Indonesia's income tax policy, focusing on the taxation of fringe benefits and non-monetary compensations. Fringe benefits, being non-monetary rewards granted to employees, have gained prominence in various sectors' remuneration structures. The evolving landscape of in-kind taxation, encompassing natural elements, prompts inquiries into the determinants of tax imposition choices and their equity ramifications. The study aims to explore the income tax perspective on fringe benefits and non-monetary gains, emphasizing the applicability of the matching principle and its implications for equitable taxation. Despite the rising importance of fringe benefits, scholarly discourse on the alignment of conformity principles with in-kind taxes remains sparse. Therefore, this study offers a fresh contribution in comprehending this matter. Employing both a policy analysis and taxation approach, the study draws data from literature, tax statutes, and the latest economic reports. The findings underscore the significance of integrating the conformity principle in the taxation of fringe benefits and non-monetary rewards. This integration can augment the efficiency and transparency of state financial management, curbing detrimental tax avoidance practices that undercut state revenue. In summary, this study validates that adopting the conformity principle in taxing fringe benefits and non-monetary gains holds the potential to bolster state revenue and enhance fiscal management efficiency. The research's implications can guide policy makers in refining the national tax framework and fostering equitable taxation in Indonesia.

Keywords

Matching Principle Tax Justice Financial Management Fringe Benefits

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Silalahi, H., & Budi Kurnia. (2023). Fringe Benefits in Tax Law: Matching Principle and Tax Justice Perspective. Ilomata International Journal of Tax and Accounting, 4(4), 684-702. https://doi.org/10.52728/ijtc.v4i4.870

References

  1. Argente, D., & García, J. L. (2015). The price of fringe benefits when formal and informal labor markets coexist. IZA Journal of Labor Economics, 4(1). https://doi.org/10.1186/s40172-014-0014-0
  2. Avram, S., & Popova, D. (2022). Do taxes and transfers reduce gender income inequality? Evidence from eight European welfare states. Social Science Research, 102. https://doi.org/10.1016/j.ssresearch.2021.102644
  3. Barid, F. M., & Wulandari, S. (2021). Praktik Penghindaran Pajak Sebelum dan Setelah Pandemi Covid – 19 di Indonesia. Jurnal Riset Akuntansi & Perpajakan (JRAP), 8(02), 68–74. https://doi.org/10.35838/jrap.2021.008.02.17
  4. Butler, C., & Calcott, P. (2018). Optimal fringe benefit taxes: the implications of business use. International Tax and Public Finance, 25(3), 654–672. https://doi.org/10.1007/s10797-017-9469-9
  5. Crocker, M., Milte, R., Duff, G., Lawless, M., Corlis, M., & Ratcliffe, J. (2022). Are Australians willing to pay more tax to support wage increases for aged care workers? Findings from a national survey. Australasian Journal on Ageing, 41(4), 513–521. https://doi.org/10.1111/ajag.13094
  6. Downs, A., & Stetson, B. (2014a). Economic and Non-Economic Factors: An Analysis of Corporate Tax Compliance. In Advances in Taxation (Vol. 21, pp. 37–72). Emerald Group Publishing Limited. https://doi.org/10.1108/S1058-749720140000021002
  7. Downs, A., & Stetson, B. (2014b). Economic and Non-Economic Factors: An Analysis of Corporate Tax Compliance. In Advances in Taxation (Vol. 21, pp. 37–72). Emerald Group Publishing Limited. https://doi.org/10.1108/S1058-749720140000021002
  8. Eichner, T., & Pethig, R. (2018). Self-enforcing capital tax coordination. Journal of Business Economics, 88(7–8), 915–940. https://doi.org/10.1007/s11573-018-0895-7
  9. Firmansyah, R. A., & Wijaya, S. (2022). Natura dan Kenikmatan Sebelum dan Sesudah Undang-Undang Harmonisasi Peraturan Perpajakan. Jurnal Pajak Dan Keuangan Negara.
  10. Hsu, A., & Liu, S. (2023a). The effect of book-tax conformity on the information environment: from the analyst perspective. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-023-01160-5
  11. Hsu, A., & Liu, S. (2023b). The effect of book-tax conformity on the information environment: from the analyst perspective. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-023-01160-5
  12. Iswahyudi, H. (2021). THE PERSISTENT EFFECTS OF COVID-19 ON THE ECONOMY AND FISCAL CAPACITY OF INDONESIA. Jurnal Ekonomi Dan Pembangunan, 29(2), 113–130. https://doi.org/10.14203/jep.29.2.2021.113-130
  13. Kraemer, R., & Lehtimäki, J. (2023). Government debt, European Institutions and fiscal rules: a synthetic control approach. International Tax and Public Finance. https://doi.org/10.1007/s10797-023-09791-z
  14. Kuhn, K. M., Meijerink, J., & Keegan, A. (2021). Human Resource Management and the Gig Economy: Challenges and Opportunities at the Intersection between Organizational HR Decision-Makers and Digital Labor Platforms. In M. R. Buckley, A. R. Wheeler, J. E. Baur, & J. R. B. Halbesleben (Eds.), Research in Personnel and Human Resources Management (Vol. 39, pp. 1–46). Emerald Publishing Limited. https://doi.org/10.1108/S0742-730120210000039001
  15. Lazear, E. P. (2018). Compensation and incentives in the workplace. In Journal of Economic Perspectives (Vol. 32, Issue 3, pp. 195–214). American Economic Association. https://doi.org/10.1257/jep.32.3.195
  16. Lokanan, M. (2023). The morality and tax avoidance: A sentiment and position taking analysis. PLoS ONE, 18(7 July). https://doi.org/10.1371/journal.pone.0287327
  17. Maria Pavelea, A., Neamţu, B., Pavel, A., & Nijkamp, P. (2022). Economic Performance and Resilience in Romania: Balancing Traditional and Creative Class Policy Approaches. Applied Spatial Analysis and Policy. https://doi.org/10.1007/s12061-022-09450-6
  18. Min, H. (2022). Assessing the impact of a COVID-19 pandemic on supply chain transformation: an exploratory analysis. Benchmarking. https://doi.org/10.1108/BIJ-04-2022-0260
  19. Ministry of Finance. (2022). Laporan Keuangan Pemerintah Pusat Tahun 2022. Https://Djpb.Kemenkeu.Go.Id/Portal/Id/Data-Publikasi/Publikasi-Cetak/Laporan-Keuangan-Pemerintah-Pusat-Lkpp.Html.
  20. Moghavvemi, S., Teng, L. S., & Mahmoud, H. (2023). The Gig Economy Ecosystem. In Reshaping the Future: The Phenomenon of Gig Workers and Knowledge-Economy (pp. 9–32). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83753-350-320231002
  21. Nguyen-Hoang, P., & Zhang, P. (2022). CAP AND GAP: THE FISCAL EFFECTS OF PROPERTY TAX LEVY LIMITS IN NEW YORK. Education Finance and Policy, 17(1), 1–26. https://doi.org/10.1162/edfp_a_00327
  22. Ngwaba, C. A., & Azizi, S. S. (2020). Effectiveness of tax reform on entrepreneurship. Journal of Entrepreneurship and Public Policy, 9(1), 94–111. https://doi.org/10.1108/JEPP-07-2019-0060
  23. Pang, Y. (2022). A theory of fiscal policy response to an epidemic. Health Economics (United Kingdom), 31(9), 2050–2071. https://doi.org/10.1002/hec.4564
  24. Pu, C., & Syu, H.-F. (2023). Effects of disability on income and income composition. PLoS ONE, 18(5 May). https://doi.org/10.1371/journal.pone.0286462
  25. Raihan, A. (2023). An econometric evaluation of the effects of economic growth, energy use, and agricultural value added on carbon dioxide emissions in Vietnam. Asia-Pacific Journal of Regional Science. https://doi.org/10.1007/s41685-023-00278-7
  26. R.P. Garcia. (2022). Linear Models for Business and Finance. McGraw-Hill Education.
  27. Saragih, A. H., Reyhani, Q., Setyowati, M. S., & Hendrawan, A. (2022). The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: the case of Indonesia. Artificial Intelligence and Law. https://doi.org/10.1007/s10506-022-09321-y
  28. Susila Adiyanta, F. C. (2020). Fleksibilitas Pajak sebagai Instrumen Kebijaksanaan Fiskal untuk Mengantisipasi Krisis Ekonomi sebagai Akibat Dampak Pandemi Covid-19. In Online Administrative Law & Governance Journal (Vol. 2, Issue 1). https://katadata.co.id/berita/2019/05/23/menko-darmin-semua-menderita-akibat-perang-dagang
  29. Voßmerbäumer, J. (2013). Incentive effects and the income tax treatment of employer-provided workplace benefits. Review of Managerial Science, 7(1), 61–84. https://doi.org/10.1007/s11846-011-0074-5
  30. Yong, S., & Fukofuka, P. (2023). Accounting, tax compliance and New Zealand indigenous entrepreneurs: a Bourdieusian perspective. Accounting, Auditing and Accountability Journal, 36(5), 1350–1378. https://doi.org/10.1108/AAAJ-12-2017-3273
  31. Zhao, Y. (2020). The influence and impact of the exchange rate on the economy. E3S Web of Conferences, 214. https://doi.org/10.1051/e3sconf/202021403007