Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges
The digital economy has triggered conflicts over the taxation of transnational economic activities. The international tax principles contained in the Double Taxation Avoidance Agreement (DTAA) are no longer considered relevant to the digital economy. The OECD introduced the ‘physical presence’ appro...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2025-12-01
|
| Series: | Cogent Social Sciences |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2025.2459321 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832542801397547008 |
|---|---|
| author | Amelia Cahyadini Tasya Safiranita Sherly Ayuna Putri Josep Irvan Gilang Hutagalung Fahriza |
| author_facet | Amelia Cahyadini Tasya Safiranita Sherly Ayuna Putri Josep Irvan Gilang Hutagalung Fahriza |
| author_sort | Amelia Cahyadini |
| collection | DOAJ |
| description | The digital economy has triggered conflicts over the taxation of transnational economic activities. The international tax principles contained in the Double Taxation Avoidance Agreement (DTAA) are no longer considered relevant to the digital economy. The OECD introduced the ‘physical presence’ approach, particularly Pillar One, offering hope for Indonesia to develop domestic regulations that address digital economic activities. Against this context, this research aims to examine the ideal model of adopting the Pillar One in Indonesian domestic law as a step to support the achievement of the 17th goal of the SDGs and analyze the potential challenges that may surface in its implementation. This study uses a normative juridical approach with literature study techniques to collect relevant secondary data. The results show that the adoption of Pillar One in the form of a law shown as an ideal model for Indonesia because it is in accordance with the principle of legal hierarchy accuracy and addresses the concerns of distortion of democracy. However, this adoption poses challenges, mainly related to the long bureaucracy in the formation process as well as the need for adequate technology, information, and communication infrastructure in the implementation stage. |
| format | Article |
| id | doaj-art-057bef83e2a84df38d30b99971b081a3 |
| institution | Kabale University |
| issn | 2331-1886 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Social Sciences |
| spelling | doaj-art-057bef83e2a84df38d30b99971b081a32025-02-03T14:36:40ZengTaylor & Francis GroupCogent Social Sciences2331-18862025-12-0111110.1080/23311886.2025.2459321Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challengesAmelia Cahyadini0Tasya Safiranita1Sherly Ayuna Putri2Josep Irvan Gilang Hutagalung3Fahriza4Department of Administrative Law at the Faculty of Law, Universitas Padjadjaran, Bandung, IndonesiaDepartment of Cyber Law at the Faculty of Law, Universitas Padjadjaran, Bandung, IndonesiaDepartment of Civil Law at the Faculty of Law, Universitas Padjadjaran, Bandung, IndonesiaDepartment of Special Procurement Policies, National Public Procurement Agency, Jakarta, IndonesiaDepartment of Cyber and Intellectual Property Law, Faculty of Law, Universitas Padjadjaran, Bandung, IndonesiaThe digital economy has triggered conflicts over the taxation of transnational economic activities. The international tax principles contained in the Double Taxation Avoidance Agreement (DTAA) are no longer considered relevant to the digital economy. The OECD introduced the ‘physical presence’ approach, particularly Pillar One, offering hope for Indonesia to develop domestic regulations that address digital economic activities. Against this context, this research aims to examine the ideal model of adopting the Pillar One in Indonesian domestic law as a step to support the achievement of the 17th goal of the SDGs and analyze the potential challenges that may surface in its implementation. This study uses a normative juridical approach with literature study techniques to collect relevant secondary data. The results show that the adoption of Pillar One in the form of a law shown as an ideal model for Indonesia because it is in accordance with the principle of legal hierarchy accuracy and addresses the concerns of distortion of democracy. However, this adoption poses challenges, mainly related to the long bureaucracy in the formation process as well as the need for adequate technology, information, and communication infrastructure in the implementation stage.https://www.tandfonline.com/doi/10.1080/23311886.2025.2459321TaxationPillar OneSDGsAsian LawAdministrative LawPublic Law |
| spellingShingle | Amelia Cahyadini Tasya Safiranita Sherly Ayuna Putri Josep Irvan Gilang Hutagalung Fahriza Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges Cogent Social Sciences Taxation Pillar One SDGs Asian Law Administrative Law Public Law |
| title | Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges |
| title_full | Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges |
| title_fullStr | Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges |
| title_full_unstemmed | Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges |
| title_short | Adopting Pillar One: an ideal model for the transformation of Indonesia’s Tax Law to realize SDGs goal XVII and it’s challenges |
| title_sort | adopting pillar one an ideal model for the transformation of indonesia s tax law to realize sdgs goal xvii and it s challenges |
| topic | Taxation Pillar One SDGs Asian Law Administrative Law Public Law |
| url | https://www.tandfonline.com/doi/10.1080/23311886.2025.2459321 |
| work_keys_str_mv | AT ameliacahyadini adoptingpillaroneanidealmodelforthetransformationofindonesiastaxlawtorealizesdgsgoalxviianditschallenges AT tasyasafiranita adoptingpillaroneanidealmodelforthetransformationofindonesiastaxlawtorealizesdgsgoalxviianditschallenges AT sherlyayunaputri adoptingpillaroneanidealmodelforthetransformationofindonesiastaxlawtorealizesdgsgoalxviianditschallenges AT josepirvangilanghutagalung adoptingpillaroneanidealmodelforthetransformationofindonesiastaxlawtorealizesdgsgoalxviianditschallenges AT fahriza adoptingpillaroneanidealmodelforthetransformationofindonesiastaxlawtorealizesdgsgoalxviianditschallenges |