Penerapan Interest to Earnings Ratio dalam Thin Capitalisation Rule Studi Kasus : KPP Perusahaan Masuk Bursa

Deskripsi

This study aims to describe the application and benefits for the potential tax revenue from the thin capitalisation rule by using the interest to earnings ratio approach. This research uses a case study method with a qualitative research approach. This research was conducted through interviews, literature studies, document analysis, and calculation simulations using data from the taxpayer's financial statements of the Listed Company Tax Office year 2019, which the public can access. The results of the study provide an overview of the formulation of thin capitalisation rules based on OECD recommendations, practices in various countries, and tax regulations in Indonesia. The results also state that income tax revenue has the potential to increase through the application of the interest to earnings ratio approach as a thin capitalisation rule. It is indicated by a correction in interest expenses that is larger than the current thin capitalisation rule.