Tax Legal Perspective on Digital Assets Trading Transactions in Metaverse

This is based on advances in technology. Technological advances pose many challenges, especially in tax regulations. Regulations cannot change as quickly as changes in the transaction model, so new transaction models often appear whose regulations have not been regulated perfectly. This causes a gray area in the regulation of these various transaction models. The Directorate General of Taxes as a tax authority must strive hard to formulate the required regulations. The challenges that arise due to the development of digital transactions in the tax sector are experienced by all countries in the world. At this time, the biggest challenge for the Directorate General of Taxes is to make regulations or tax laws on digital assets (trading transactions carried out through electronic systems). There are risks of cyber-crime such as identity forgery, piracy, counterfeiting, fraud, and even money laundering. The Indonesian government, especially the Directorate General of Taxes, must be aware of the various challenges posed by digital economic transactions, including tax avoidance and tax evasion. For this reason, the government must create and strengthen tax laws so that gaps in tax avoidance and tax evasion practices can be closed. This study uses a normative research method by reviewing and describing library materials in the form of literature, legislation and some news related to the problems to be discussed.