Government Changes Calculation Scheme
The government will change the scheme to calculate the tax obligation of giant internet-based digital companies or over-the-top companies. The amount of tax will be based on the volume of economic activity transactions, not the presence or absence of a permanent business unit.
People pass by Facebook’s corporate logo on April 30, 2019 at the F8 Facebook Developers conference in San Jose, California, United States.
JAKARTA, KOMPAS — The government will change the scheme to calculate the tax obligation of giant internet-based digital companies or over-the-top companies. The amount of tax will be based on the volume of economic activity transactions, not the presence or absence of a permanent business unit.
Finance Minister Sri Mulyani Indrawati said the tax obligations of cross-country companies that ran businesses in Indonesia, such as Google, Facebook and Twitter, would no longer be based on whether there was a permanent business unit. But, rather on the economic benefits the companies gained in Indonesia.