Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

The Imposition of Income Tax on Contract Investment Collective-Asset Backed Securities Transactions in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301219,
        author={Fatmah  Shabrina and Wulandari Kartika Sari and Milla Sepliana Setyowati},
        title={The Imposition of Income Tax on Contract Investment Collective-Asset Backed Securities Transactions in Indonesia},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={asset-backed securities margin income withholding income tax},
        doi={10.4108/eai.5-8-2020.2301219}
    }
    
  • Fatmah Shabrina
    Wulandari Kartika Sari
    Milla Sepliana Setyowati
    Year: 2020
    The Imposition of Income Tax on Contract Investment Collective-Asset Backed Securities Transactions in Indonesia
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301219
Fatmah Shabrina1,*, Wulandari Kartika Sari1, Milla Sepliana Setyowati1
  • 1: Department of Fiscal Administration, Faculty of Administration Science, University of Indonesia
*Contact email: shabrinasymln@gmail.com

Abstract

Asset-Backed Securities is securities consisting of a collection of financial assets in the form of bills such as credit card bills, leasing bills, housing loans, toll-road revenues, and so on. It is a high-level investment instrument with characteristics such as fixed income securities where investors get income to benefit from investment in CIC-ABS. This study aims to analyze the imposition of taxes on CIC-ABS transactions in Indonesia, using a qualitative approach and descriptive research type which conducted from February 2020 to July 2020. In the provisions of income tax, CIC-ABS is considered "other forms of corporate", so that the income tax aspect is the same as that of a corporate taxpayer. One of CIC-ABS income comes from the margin it receives from Originator. The margin is calculated in CIC-ABS income, and Withholding Income Tax Article 23 is deducted because it is categorized as interest.