Income Tax Regulations for Child Content Creators of TikTok Platform: Inefficacy of Indonesian Legal Frameworks

The widespread use of social media like TikTok has enabled underage children to become content creators and generate substantial income. Objectively, this income could be subject to individual income tax. However, their underage status prevents taxing them individually. This study evaluates the effectiveness of Law Number 7 of 2021 on tax regulations for child TikTok content creators. It explores factors influencing the law's ineffectiveness in increasing their income tax and efforts for fair tax arrangements. Using normative legal research with statutory and comparative approaches, analyzing tax regulations and literature, the findings show: First, Law Number 7 of 2021 is ineffective as legal issues around taxing minors' income remain unresolved. Collaboration between tax authorities and children is needed. Second, fair income tax collection on child TikTok creators requires considering justice, regulatory certainty, timing of collection, simplicity in implementation, and age-appropriate conditions. Special regulations governing income tax on underage earners are required, like in the US and Australia with specific rules taxing children's income exceeding thresholds. The study highlights the need for comprehensive legal solutions to ensure fair taxation of the growing phenomenon of underage social media content creators' earnings while protecting their rights and interests.