Indonesia Supports International Cooperation
Tax policies on global technology companies conducting online transactions in Indonesia should be based on where the services are sold rather than where the companies are based. The implementation of the tax system should be based on international cooperation.
The Facebook logo is displayed during the F8 Facebook Developers conference in San Jose, California, April 30, 2019. Google and Facebook Indonesia have not given any comment on Indonesia’s tax policy on global technology companies.
JAKARTA, KOMPAS — Tax policies on global technology companies conducting online transactions in Indonesia should be based on where the services are sold rather than where the companies are based. The implementation of the tax system should be based on international cooperation.
At a meeting in Fukuoka, Japan, on Saturday, finance ministers of the G-20 countries agreed to formulate taxation rules for giant technology companies, which have used loopholes to reduce their tax payment, such as by basing their operations in a country with lower taxes, even though most of their customers are not in that country.