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Jakarta Post

Indonesia to explore options for taxing tech giants

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Tue, June 18, 2019   /  10:55 am
The Jakarta Post Image
Google(AFP/Lionel Bonaventure )

The government is exploring options on how to tax tech giants after the Group of 20 ( G20 ) affirmed its commitment in its communique to agreeing to a set of rules on digital taxation by next year. The Finance Ministry’s Taxation Directorate General international taxation director, John Hutagaol, said the government was preparing regulations on the issue. The government is also awaiting a consensus that is set to be reached by 2020 hopefully after a report issued by the Inclusive Framework on Base Erosion Profit Shifting (BEPS). The Inclusive Framework on BEPS is a working group under the Organization for Economic Cooperation and Development (OECD) that brings together over 125 countries and jurisdictions to fight against global tax avoidance. “[We] are preparing regulations with a view to expanding the definition of permanent establishment and antitax-avoidance r...