written by Gerry Octaviano, S.Sos, MBA
GR 93 & MoF 76 do not govern properly regarding the donation for medical equipments. It simply regulates the donation for social infrastructure but does'nt explain properly whether it is only for build a place such as hospital or the medhical equipments included as well in this defintion. Since the spirit of the regulation is the donation for the society therefore medhical equipments should be included and can be deductible expenses.
Tax Payer's purpose is to help society and assists Indonesia for the health. Ministry of Health should collaborate with Ministry of Finance to design the tax incentive for this issue.
Allah Wa' Alam.
Thursday, September 6, 2012
Friday, August 31, 2012
VAT on cross border transaction
written by Gerry octaviano
Indonesia adopted both origin and destination principle, it can be seen from the SE-145 which revoked SE-08 concerning VAT on trading services. This regulation explains clearly vat imposed where the service is performed (origin principles) and where the service is received.
The question is if the customer from Indonesia (Mr.A) and service provider from US (mr.b).
Mr.A goes to US to consult regarding his financial corporation.
1. Should Indonesia has the right to impose the VAT?
...............
How about e-commerce transaction i.e agoda, etc...?????.....
Allah Wa'Allam
Indonesia adopted both origin and destination principle, it can be seen from the SE-145 which revoked SE-08 concerning VAT on trading services. This regulation explains clearly vat imposed where the service is performed (origin principles) and where the service is received.
The question is if the customer from Indonesia (Mr.A) and service provider from US (mr.b).
Mr.A goes to US to consult regarding his financial corporation.
1. Should Indonesia has the right to impose the VAT?
...............
How about e-commerce transaction i.e agoda, etc...?????.....
Allah Wa'Allam
Wednesday, August 29, 2012
How to deal with taxation for Islamic Finance Products
Written by Gerry Octaviano
In order to design tax regulation for Islamic Finance products required the people who are expert in both (tax and Islamic Finance). It will not work if only expert in tax or only Islamic Finance.
Those people should know the purpose of Islamic Finance which to boost the real economy and downsized the financial economy.
I am so disappointed once I knew mostly (more or less 80%) Islamic Financial Institutions earned income from murabahah (which similar to conventional but fixed rate - more towards for consumption) instead of parnership (mudharabah or musharaqah).
The prevailing tax regulations shows that Islamic Financial Institution in substance similar to the conventional products. Indonesian Tax Authority ("ITO") does not impose any tax on the Islamic Finance scheme with the reason it is simply to fulfill Sha'riah principle.
Those people who expert in both (tax & shari'ah) should be hired by Government to design the proper tax regulation and Islamic Banking with Bank Indonesia in order the purpose of the Shariah can be fulfilled.
Allah Wa'Alam.
In order to design tax regulation for Islamic Finance products required the people who are expert in both (tax and Islamic Finance). It will not work if only expert in tax or only Islamic Finance.
Those people should know the purpose of Islamic Finance which to boost the real economy and downsized the financial economy.
I am so disappointed once I knew mostly (more or less 80%) Islamic Financial Institutions earned income from murabahah (which similar to conventional but fixed rate - more towards for consumption) instead of parnership (mudharabah or musharaqah).
The prevailing tax regulations shows that Islamic Financial Institution in substance similar to the conventional products. Indonesian Tax Authority ("ITO") does not impose any tax on the Islamic Finance scheme with the reason it is simply to fulfill Sha'riah principle.
Those people who expert in both (tax & shari'ah) should be hired by Government to design the proper tax regulation and Islamic Banking with Bank Indonesia in order the purpose of the Shariah can be fulfilled.
Allah Wa'Alam.
Saturday, August 25, 2012
Does the tax Treatment show the impurity of islamic finance?
Written by Gerry Octaviano, MBA
According to prevailing tax regulation VAT does not impose on islamic finance scheme if it is simply to fulfill the shariah principle.
The VAT only impose on the delivery of taxable goods from the party who owns the taxable goods (the real seller) to the party who really needs the taxable goods (the real buyer).
From the above explanation, we can raise the following questions:
1. Does it mean the existing islamic finance only unreal translations where actually the goods and/service, parties do not exist?
And.....
2. Who are the parties that can fix the situations?
.................. It could be you.......
Allah Wa'Allam
According to prevailing tax regulation VAT does not impose on islamic finance scheme if it is simply to fulfill the shariah principle.
The VAT only impose on the delivery of taxable goods from the party who owns the taxable goods (the real seller) to the party who really needs the taxable goods (the real buyer).
From the above explanation, we can raise the following questions:
1. Does it mean the existing islamic finance only unreal translations where actually the goods and/service, parties do not exist?
And.....
2. Who are the parties that can fix the situations?
.................. It could be you.......
Allah Wa'Allam
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