TEMPO.CO, Jakarta - Communication and Information Minister Johnny G. Plate said the government was drafting regulations to tax digital-based entertainment service providers such as Netflix and Spotify. Detail rules, he added, will be noted in omnibus law on taxation.
Johnny said the omnibus law draft was still being finalized. Albeit the draft completion missed the target to be submitted to the House of Representatives (DPR) in December this year, he hoped the bill can be ratified and take into effect soon.
“I think [the draft] is in the final stage,” said Johnny at his residence Cilandak, South Jakarta, Wednesday, December 25.
By the time the law is passed, Johnny asserted, all digital firms are obliged to pay tax. "If they do not pay tax, whether [their office] is in this country or abroad, they will face sanctions," the minister added.
Previously, Finance Minister Sri Mulyani Indrawati said she had met with the House of Representatives (DPR) speaker Puan Maharani and talked about the draft concept of Taxation Omnibus Law.
During the meeting, Sri Mulyani explained the law will stipulate taxation on the digital economy, specifically those related to electronic transactions which will apply to digital platforms. The digital tax will also be applied to platforms that have no physical headquarters in the country or a permanent establishment (PE).