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Original Research

STAGNATION OF BRANCH PROFIT TAX CASE SETTLEMENT IN PRODUCTION SHARING CONTRACT IN INDONESIA (THE EXHAUSTION OF LOCAL REMEDIES CASE) WITH NETHERLANDS - INDONESIA BILATERAL INVESTMENT TREATY AS THE SAMPLING TOOLS

AGUS IMANUDDIN 1, ANHAR FAUZAN PRIYONO 2, ZAINAL MUTTAQIN 3, and EMAN SUPARMAN 4.

Vol 18, No 08 ( 2023 )   |  DOI: 10.5281/zenodo.8297439   |   Author Affiliation: Faculty of Law, University of Padjadjaran, Bandung 45363, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 1123-1139   |   Published on: 26-08-2023

Abstract

Branch Profit Tax in Production Sharing Contract is a tax case settled under the authority of the Tax Court in Indonesia. This case has a considerably complex dimension associated with taxes, business contracts, and transnational reach. The settlement of the Branch Profit Tax in the Production Sharing Contract dispute through the tax litigation system in Indonesia today has yet to succeed and give legal certainty. Such uncertainty in settling the Branch Profit Tax dispute has caused failure in the domestic dispute settlement mechanism. The failure may lead to other alternatives in the dispute settlement process, namely an international arbitration mechanism within the investment dispute framework as regulated in Bilateral Investment Treaty Indonesia – the Netherlands base.


Keywords

Production Sharing Contract, Branch Profit Tax, Dispute Settlement, International Investment Law, Bilateral Investment Treaty