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ANALISIS PENERAPAN TAX TREATY DI PT HERLINA INDAH

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ABSTRACT AN ANALYSIS IMPLEMENTATION OF TAX TREATY IN PT HERLINA INDAH Written by: Joyli Timbul M T Malau NIM: 1332138 Each country has a different Tax Law in terms of determining its international tax rights. This allows for the imposition of taxes when two tax jurisdictions interact as a result of transaction between two countries. Each country has a method in avoidance of double taxation, however this was not guaranteed that double taxation can be completely avoided. In this study, the writer used field research by doing observation and conducted the interviews directly to the company. In addition, the writer does literature research which was supported by using literatures, books, and other sources related to the problems of the studied. From the result of the study related to the tax treaty between two bilateral countries which was Indonesia and Singapore, there were several problems that may occur such as there were differences in the principle of taxation on income. Therefore, as the result of the convergence of both principle, it caused double taxation would occur. The incidence of other double taxes was also caused due to the imposition of the same type of taxes by the two countries in international tax treaties. Based on the results of the analysis that has been done by the writer, it can be concluded that the two countries that were associated in international tax treaties and for the interest of related companies then the company must be subject to and follow the rules of taxation in accordance with the regulations contained in the tax treaty. Key Words : Tax treaty, Double Taxation