Proceedings of the 6th International Accounting Conference (IAC 2017)

Analysis of Value-Added Tax Treatment of Unit Linked Life Insurance Services

Authors
Muhammad Ravin Alhakim, Yohanes Yohanes
Corresponding Author
Muhammad Ravin Alhakim
Available Online August 2017.
DOI
https://doi.org/10.2991/iac-17.2018.33How to use a DOI?
Keywords
Unit Link; Insurance; VAT; Investment Management Services
Abstract

Unit linked insurance companies have two activities, namely assurance services and investment management services. The purpose of this study is to analyze whether or not unit linked life insurance services are included in the terms of Taxable Services that impose Value Added Tax (VAT), and how the imposition and calculation of VAT are carried out on a Tax Imposition Basis (TIB). Based on a Tax Court Decision case study, there is a dispute as to whether or not unit linked life insurance services impose VAT. There is a difference of opinion between the Directorate General of Taxation (DGT) and insurance companies and judges. The method in this research is descriptive analysis in the form of a case study. Analysis of the VAT treatment of unit linked life insurance services is carried out by interviewing informants and through a study of the literature. The result is that all parties agree that the assurance service does not impose VAT, while there are different opinions concerning the investment management service. Analysis is also carried out on the calculation of the VAT on a TIB for unit linked investment management service as the replacement price based on the investment management fee charged to the customer and the top-up charge of the investment.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th International Accounting Conference (IAC 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
978-94-6252-519-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/iac-17.2018.33How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Muhammad Ravin Alhakim
AU  - Yohanes Yohanes
PY  - 2017/08
DA  - 2017/08
TI  - Analysis of Value-Added Tax Treatment of Unit Linked Life Insurance Services
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 184
EP  - 188
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.33
DO  - https://doi.org/10.2991/iac-17.2018.33
ID  - Alhakim2017/08
ER  -