Publisher

LANLAN

Journal jurnal borneo administratorjurnal borneo administrator Abstract

This study aims to provide a brief and analytical reporting on IFRS 15 adoption in Indonesia related to Income Tax and Value Added Tax (VAT) issues. The authors used a qualitative approach with data collection through in-depth interviews. The findings demonstrate the need for entities to consider taxation issues arising from revenue recognition developments. Discrepancies between accounting and tax require documentation. Taxpayers face increased compliance costs due to IFRS 15 adoption, including mark-to-market and realization taxation. Implementing PSAK 72 to align with the realization principle increases taxpayer compliance costs through detailed fiscal reconciliations. From a VAT perspective, Taxable Entrepreneurs need to adjust contracts to ensure the time of supply determines VAT payable. This research highlights the gap between accounting and taxation, offering lessons for other countries.

Conclusion

The implementation of PSAK 72 necessitates careful consideration of taxation issues related to revenue recognition.Discrepancies between accounting and tax treatments can arise, requiring thorough documentation and potentially increasing compliance costs for taxpayers.Specifically, the shift towards a balance sheet orientation under PSAK 72, coupled with the continued reliance on income statement-based taxation, creates challenges for accurate tax reporting.Therefore, a proactive approach to contract adjustments and detailed fiscal reconciliations is crucial for ensuring compliance and minimizing potential disputes with tax authorities.

Future Research

Further research should investigate the impact of PSAK 72 on specific industries to understand the nuanced tax implications and develop tailored guidance. A comprehensive analysis of the costs and benefits of different taxation models – realization, accrual, and hybrid – in the context of IFRS 15 adoption is needed to inform policy recommendations. Additionally, research could explore the effectiveness of current tax dispute resolution mechanisms in addressing disagreements arising from the application of PSAK 72, and propose improvements to enhance clarity and efficiency. These investigations should also consider the perspectives of both taxpayers and tax authorities to ensure a balanced and practical approach to resolving the challenges posed by the convergence of accounting and tax standards, ultimately contributing to a more transparent and equitable tax system in Indonesia. The study should also explore the potential for developing standardized contract clauses that address VAT implications, reducing ambiguity and minimizing disputes.

References

1. Guerreiro | Changing from a Rules-based to a Principles-based Accounting Logic: A Review | Australasian... doi.org/10.14453/aabfj.v8i2.8Guerreiro Changing from a Rules based to a Principles based Accounting Logic A Review Australasian doi 10 14453 aabfj v8i2 8
2. jurnal borneo administrator. pelajaran pelaksanaan reformasi pajak vietnam jurnal borneo authors abdul... jba.lan.go.id/article/view/276jurnal borneo administrator pelajaran pelaksanaan reformasi pajak vietnam jurnal borneo authors abdul jba lan go article view 276
3. jurnal borneo administrator. tax issues revenue recognition ifrs adoption jurnal borneo authors prianto... jba.lan.go.id/article/view/877jurnal borneo administrator tax issues revenue recognition ifrs adoption jurnal borneo authors prianto jba lan go article view 877

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