TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro said the Directoral General of Tax is currently examining tax data of PT Yahoo Indonesia, PT Google Indonesia, Twitter Asia Pacific PTE Ltd and Facebook Singapore PTE Ltd, following hard evidence being found that the four technology companies was not registered as a permanent establishment (BUT).
“We are conducting special examination to ensure if they have reported all of their respective advertisement services in Indonesia,” Bambang said in a press conference at the headquarters of Directorate General of Tax, Jakarta, Wednesday, April 6, 2016.
Bambang revealed that both Yahoo and Google are registered at Tanah Abang Tax Service Office as foreign invested legal entities. Yahoo was registered on July 30, 2009 and Google was registered on September 15, 2015.
“Since Yahoo is acting as a dependent agent of Yahoo Singapore PTE Ltd, income obtained in Indonesia should have been the income of Yahoo PTE Ltd’s permanent establishment. The same applies to Google,” Bambang noted.
In contrast with Yahoo and Google, according to Bambang, Twitter and Facebook are registered at the tax ofice of foreign individual and entities as a representative office. The Singapore-based Twitter Asia Pacific was registered on April 22, 2015. Whereas, Facebook Singapore, also based in Singapore, was registered on February 10, 2014.
Bambang said Twitter and Facebook are acting as a dependent agent of their respective headquarters in Singapore, therefore, both must become a permanent establishment. “By becoming a BUT [permanent establishment], their money can be retained here. If [their respective status is] a representative office, all of their money will go to country of origin and tax income [will be levied] there, in Singapore,” he said.
Director General of Tax Ken Dwijugiasteadi said, by becoming a permanent establishment, the four companies will have to pay taxes in Indonesia. “Taxes to be paid are PPh [income tax] and Value-Added Tax. There’s also offshore VAT. Failing that, they may be sentenced to four years in prison,” Ken added.
ANGELINA ANJAR SAWITRI
