Sri Mulyani Preps Taxation Draft Bill to Tax Google



Petir Garda Bhwana

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  • TEMPO.CO, JakartaFinance Minister Sri Mulyani said the government will prepare a draft bill on new taxation. Through this regulation, international digital companies such as Google, Amazon, Netflix, and others will be subject to tax.

    “With this draft bill, we state that they can collect, submit, and report the value-added tax (PPN),” said Sri in Presidential Office, State Palace complex, Jakarta, Tuesday, September 3.

    She explained the draft bill is designated to tackle tax evasion. The tariff, meanwhile, will remain at 10 percent.

    Besides, in response to the development of the digital economy, the government will revise the definition of the permanent business entity (BUT) in this draft regulation. According to her, the definition will be no longer based on the office presence in the country.

    “So if they [digital firms] do not have an office branch in Indonesia, they will still be subjected to tax liability,” Sri Mulyani said.

    In addition to the taxation regulations for international digital companies, the draft bill will also address incentives for taxpayers before it is submitted to the House of Representatives (DPR).