Designing Digital Tax Scheme: Case Study on Booking.Com

I Dewa Made Partika, I Nyoman Darmayasa (), Ni Ketut Utami Dewi and Ni Wayan Lia Apriani
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I Dewa Made Partika: Politeknik Negeri Bali, Accounting Department
I Nyoman Darmayasa: Politeknik Negeri Bali, Accounting Department
Ni Ketut Utami Dewi: Politeknik Negeri Bali, Accounting Department
Ni Wayan Lia Apriani: Politeknik Negeri Bali, Accounting Department

A chapter in Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024), 2024, pp 670-678 from Springer

Abstract: Abstract This study aims to design a digital tax scheme based on a case study of the effort to tax Booking.com. This study used a qualitative case study methodology. Articles related to tax subjects and tax objects in a tax treaty are secondary data. Designing a digital tax on a case study on Booking.com starts by determining the tax subject, followed by its tax object. Based on Article 5 (2a) of the tax treaty Indonesia – Netherlands, the term permanent establishment shall include a place of management. The publication of booking.com stated that it was registered and based in Amsterdam in the Netherlands. In Article 5 (2b), the term permanent establishment shall include a branch, and the publication of Booking.com states that support companies do not render the service and do not own, operate, or manage the website or any other website. New designs should add additional criteria to determine whether booking.com is a permanent establishment from an income perspective. This study contributes to both the equity principal tax treaty between domicile and source-country partners. Practically, it can be an alternative to ratifying the tax treaty of Indonesia with potential source income from Indonesia with tax domicile in contracting country partners.

Keywords: Digital Tax; Equity; Fairness; Tax Treaty (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-622-2_74

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