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Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah

E-commerce provides a new way of conducting commercial transactions in today’s global market. E-commerce has made the world a one big marketplace. However, e-commerce also poses challenges to the existing tax rules in determining permanent establishment of businesses. Permanent establishment has bee...

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Main Authors: Othman, Zaleha, Mohd Hanefah, Mustafa
Format: Article
Language:English
Published: Accounting Research Institute (ARI) & Faculty of Accountancy 2006
Subjects:
Malaysia
Online Access:http://ir.uitm.edu.my/id/eprint/275/2/AJ_ZALEHA%20OTHMAN%20MAR%2006.pdf
http://ir.uitm.edu.my/id/eprint/275/
https://mar.uitm.edu.my/
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spelling my.uitm.ir.2752019-03-11T00:04:14Z http://ir.uitm.edu.my/id/eprint/275/ Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah Othman, Zaleha Mohd Hanefah, Mustafa Malaysia Malaysia E-commerce provides a new way of conducting commercial transactions in today’s global market. E-commerce has made the world a one big marketplace. However, e-commerce also poses challenges to the existing tax rules in determining permanent establishment of businesses. Permanent establishment has been used as the criteria to determine whether a country has taxing rights on the business profits of a non-resident taxpayer. Most tax experts view the current concept of permanent establishment as insufficient to cope with e-commerce, as it is seen to be more suitable for traditional business transactions rather than internet trading. This paper investigates the application of current tax laws in Malaysia on the determination of permanent establishment in an e-commerce environment. Implications of existing policy to establish the source of income in e-commerce are also explored. Interviews were conducted to solicit opinions of tax officers and tax professionals in Malaysia. The respondents agree that the criteria used to determine permanent establishment should be applicable to both types of transactions: conventional and e-commerce. However, the respondents perceived that additional criteria should be included to determine permanent establishment in e-commerce transactions and some modifications to its definition are necessary to suit the modern form of trading over the internet. Accounting Research Institute (ARI) & Faculty of Accountancy 2006-10 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/275/2/AJ_ZALEHA%20OTHMAN%20MAR%2006.pdf Othman, Zaleha and Mohd Hanefah, Mustafa (2006) Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah. Malaysian Accounting Review, 5 (2). pp. 1-11. ISSN 1675-4077 https://mar.uitm.edu.my/
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Malaysia
Malaysia
spellingShingle Malaysia
Malaysia
Othman, Zaleha
Mohd Hanefah, Mustafa
Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
description E-commerce provides a new way of conducting commercial transactions in today’s global market. E-commerce has made the world a one big marketplace. However, e-commerce also poses challenges to the existing tax rules in determining permanent establishment of businesses. Permanent establishment has been used as the criteria to determine whether a country has taxing rights on the business profits of a non-resident taxpayer. Most tax experts view the current concept of permanent establishment as insufficient to cope with e-commerce, as it is seen to be more suitable for traditional business transactions rather than internet trading. This paper investigates the application of current tax laws in Malaysia on the determination of permanent establishment in an e-commerce environment. Implications of existing policy to establish the source of income in e-commerce are also explored. Interviews were conducted to solicit opinions of tax officers and tax professionals in Malaysia. The respondents agree that the criteria used to determine permanent establishment should be applicable to both types of transactions: conventional and e-commerce. However, the respondents perceived that additional criteria should be included to determine permanent establishment in e-commerce transactions and some modifications to its definition are necessary to suit the modern form of trading over the internet.
format Article
author Othman, Zaleha
Mohd Hanefah, Mustafa
author_facet Othman, Zaleha
Mohd Hanefah, Mustafa
author_sort Othman, Zaleha
title Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
title_short Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
title_full Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
title_fullStr Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
title_full_unstemmed Taxation, e-commerce and determination of permanent establishment / Zaleha Othman and Mustafa Mohd Hanefah
title_sort taxation, e-commerce and determination of permanent establishment / zaleha othman and mustafa mohd hanefah
publisher Accounting Research Institute (ARI) & Faculty of Accountancy
publishDate 2006
url http://ir.uitm.edu.my/id/eprint/275/2/AJ_ZALEHA%20OTHMAN%20MAR%2006.pdf
http://ir.uitm.edu.my/id/eprint/275/
https://mar.uitm.edu.my/
_version_ 1685648045512851456
score 13.211869

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