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Jakarta Post

Indonesia to join global quest for digital tax unity

  • News Desk

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, February 6, 2020   /  03:47 pm
The Jakarta Post Image
The Directorate General of Taxation on Jl. Gatot Subroto in Jakarta has a distinctive iconic architectural style.(kontan.co.id/File)

Finance Minister Sri Mulyani Indrawati said on Wednesday that the omnibus bill would contain a mechanism to ensure that digital companies fulfilled their tax obligations without changing existing tax provisions, such as a new requirement on value-added tax. The omnibus bill on taxation is to include a digital tax policy that taxes all digital companies doing business in Indonesia, even if they do not have a physical presence in the country. Speaking during a panel discussion at the Mandiri Investment Forum in Jakarta, the minister explained that the bill needed to address digital taxation because of the significant development of the digital economy and tax laws that had yet to catch up with the new business model. Digital companies like Google, Facebook, Netflix and Spotify were subject  to “fair taxation”, even...