Mitigating International Double Taxation: A Study of Indonesian Tax Law

Abstract

This research investigates the measures taken by the Indonesian government to mitigate tax conflicts, taxation on transactions between two countries based on the current regulations of the Indonesian Tax Law. The author employs qualitative methods, including reviewing academic literature and other related materials, conducting focus group discussions to collect input for the design of the research report, and using a subjective approach to review existing data and materials. The author concludes that the Indonesian government has implemented three measures to minimize the occurrence of international double taxation. First, efforts to minimize the occurrence of international double taxation unilaterally, those regulated in a country’s domestic laws. Second, efforts to minimize the occurrence of international double taxation bilaterally.  Third, efforts should be made to minimize the occurrence of international double taxation multilaterally.