Regulatory Efforts: The Case of Indonesia
In response to tax haven practices, Indonesia issued Minister of Finance Regulation No. 258/PMK.03/2008, which addresses income tax (PPh) deductions on income derived from the sale or transfer of shares by foreign taxpayers using intermediary companies located in tax havens.
Under this regulation, such income is subject to a final tax of 20% on 25% of the transaction value. However, if the foreign taxpayer resides in a country that has a Double Taxation Avoidance Agreement (DTAA) with Indonesia, tax withholding is only applied if the taxing rights are allocated to Indonesia.
This regulation reflects Indonesia's recognition of the importance of protecting its tax base from erosion caused by the use of tax haven jurisdictions.
Final Reflection
Nietzsche and Heidegger urge us to transcend legalistic and technocratic modes of thinking. They encourage us to realize that practices such as tax havens are not merely technical or legal anomalies, but reflections of a deeper crisis---of values and of the modern human mindset that has lost its ethical depth. Tax havens are not just about laws; they concern how we perceive the world, the state, and our social responsibilities.
In the academic context, this reflection is crucial so that we do not become merely technical professionals, but also citizens with ethical awareness. Higher education should not only be a place for mastering formulas and regulations, but also a space for questioning, understanding, and shaping a more just world.
Conclusion
From the detailed discussions throughout this paper, it is clear that tax havens are not merely technical matters of taxation, but manifestations of the patterns of thought and power structures of the modern world. Tax havens are symptoms of a world trapped in the logic of efficiency, dominance, and ethical exclusion. Through Nietzsche's lens, we see how master morality subjugates slave morality within the global legal order, where the powerful write the rules to preserve privilege. Through Heidegger, we observe that the technological mindset---one that reduces the world to mere Bestand (resources)---has transformed law, taxation, and even the state into instruments for maximizing profit.
