Technology Architecture as an Instrument for Digital Taxation

Abstract

Digital transformation fuels technological advancement and widespread public use of Internet networks, leading to a growth in digital platform users. This increase is highly likely to boost platform profits by obtaining more insights into user behavior. Additionally, digital platforms generate income through monetization. The purpose of this research is to examine the role and challenges of technology architecture as an instrument of digital tax imposition in Indonesia and to see further the digital tax arrangements in Indonesia and several countries in the world. This research uses a normative juridical approach by examining the norms or rules formulated in law without excluding empirical facts in the field. The results show that the imposition, implementation, and regulation of digital taxes have potential and challenges from various aspects. Their success will depend on the ability to overcome these challenges while maximizing the opportunities of technological architecture to increase digital taxes. Furthermore, to regulate digital tax itself, governments can update and integrate digital tax arrangements, as well as collaborate with other related parties regarding the arrangements or principles used for the imposition of digital tax.