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Minister reiterates demand for Google to pay tax
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Google Indonesia managing director Tony Kuesgen during the announcement of Year in Search 2016. (Google Indonesia/File)
C
ommunications and Information Minister Rudiantara has reasserted that it is the obligation of every over-the-top (OTT) company generating revenue from the Indonesian market, including search engine giant Google, to pay tax.
“We are thankful for Google for bringing a lot of benefit to our society, but every OTT Company doing business in Indonesia should pay tax,” Rudiantara said on the sidelines of the Indonesia Technology Forum held in Jakarta on Thursday.
He said he supported the Finance Ministry’s ongoing efforts to collect what are reported to be millions of dollars of tax liabilities from Singapore-based Google Asia Pacific Pte. Ltd., which has allegedly earned outstanding revenue from Indonesian advertisers but failed to pay proper tax.
Finance Ministry tax officials summoned executives of the company on Thursday to clarify documents previously submitted by the internet giant regarding a preliminary tax investigation.
The government claims Google owes Rp 5 trillion (US$373.8 million) in back taxes and penalties since 2011 and the tax office estimates that its revenues reached Rp 6 trillion in 2015.
