Tax Planning for Shipping Company Business Expansion

Sandy Zulfadli

2018

Abstract

Several previous studies have shown that tax planning schemes have significant effects on the valuation of firms in terms of investment decisions for global expansion. This research limits its scope in tax planning, precisely in how to choose the most profitable legal form of business units from taxation aspect, by simulating how much total tax expenses are incurred by the company, whether they conduct business in Singapore with subsidiary, with permanent establishment or without subsidiary nor permanent establishment. The country used as the basis (as the benchmark/example for expansion destination) for this paper is Singapore, as Singapore is frequently used by Indonesian-based companies for expansion destination, due to its close geographical location, corporate-friendly tax regulations, and high legal certainty, connected to its economic and political stability. The research method used in this paper is the qualitative analysis method, with a case study approach using company X, which is based in Indonesia and conducts domestic and international shipping operations. The data used in this paper are primary data such as company profiles, business development plans and financial reports from X company, as well as corporate tax regulations in Indonesia and Singapore. This study finds that a company that conducts its business without subsidiary nor permanent establishment in Singapore, is the most profitable legal form of business unit according to taxation aspect.

Paper Citation

in Harvard Style

Zulfadli S. (2018). Tax Planning for Shipping Company Business Expansion.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 1114-1121. DOI: 10.5220/0009505611141121

in Bibtex Style

@conference{unicees18,
author={Sandy Zulfadli},
title={Tax Planning for Shipping Company Business Expansion},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={1114-1121},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009505611141121},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Tax Planning for Shipping Company Business Expansion
SN - 978-989-758-432-9
AU - Zulfadli S.
PY - 2018
SP - 1114
EP - 1121
DO - 10.5220/0009505611141121