The Antinomy of Lex Specialis Between Production Sharing Contracts (PSCs) and Double Taxation Avoidance Agreements (DTAs): Reconciling Fiscal Stability and Legal Certainty in International Taxation in Indonesia
DOI:
https://doi.org/10.38035/gijlss.v3i3.570Keywords:
Lex Specialis Antinomy, Branch Profit Tax (BPT), Production Sharing Contract (PSC), Double Taxation Avoidance Agreement (DTAA), Legal CertaintyAbstract
The conflict between lex specialis regimes in the taxation of Production Sharing Contracts (PSCs) in Indonesia's oil and gas sector has generated significant legal controversy, primarily concerning the determination of the Branch Profit Tax (BPT) rate. The dispute revolves around a rate discrepancy: tax authorities enforce the domestic 20% rate, guaranteed by the Income Tax Law and the PSC’s fiscal stability clause, while foreign taxpayers demand the 10% rate stipulated by the relevant Double Taxation Avoidance Agreement (DTA), asserting the DTA is lex specialis in international law. This study utilizes a normative juridical approach, integrating economic-tax, constitutional, and administrative law analysis, to examine three core issues: DTA priority, the legal force of PSC stability clauses, and the application of legal principles in the domestic-international interaction. The findings reveal a divide: the majority of Tax Court decisions (75%) upheld the 20% rate based on state fiscal sovereignty. However, Supreme Court jurisprudence (Decision No. 2747/B/PK/Pjk/2018) affirmed that the ratified DTA holds a higher legal position, acting as lex specialis derogat legi generali, thus limiting the BPT rate to 10%. This outcome necessitates normative reconciliation between contractual fiscal stability and international tax legal certainty, essential for balancing the protection of state fiscal interests with guaranteeing legal predictability for foreign investors within the framework of sustainable fiscal justice.
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