Omnibus Law; Govt's Digital Tax Plan Aimed at Netflix, Spotify
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December 24, 2019 | 01:09 pm
TEMPO.CO, Jakarta - The Communication, and Informatics (Kominfo) Minister Johnny Gerald Plate confirms that the government is composing a tax plan aimed at digital entertainment services such as Netflix and Spotify. Once completed, the regulation will be included in the Omnibus Law on taxation.
“The digital tax on digital business will be composed within the taxation Omnibus Law. I have communicated with them for the moment,” said Johnny at the ministry’s headquarters on Monday.
According to Johnny, firms such as Netflix and Spotify can be handed sanctions if they fail to pay taxes.
One of the clusters within the omnibus law on taxation oversees the digital economy taxations, especially in electronic transactions that is deemed similar to normal taxes. This rule will also apply for digital platforms, with or without physical headquarters or a permanent business entity (BUT).
According to Finance Minister Sri Mulyani, the omnibus law’s digital taxation cluster is the government’s attempt to tax foreign digital giants with headquarters located overseas such as Netflix, Amazon, Google, up to Facebook.
CAESAR AKBAR | ANTARA
