Google logo at the Indonesia-based Google headquarters (Photo: Kompas.com/Via The Jakarta Post) Jakarta (VNA) – Indonesia’s government has tightened its taxcollection policy on high-technology enterprises in the country, starting withthe US-based technology giant Google, as the companies have not paid enough tothe government despite their expansion.
Last week, the country reached a tax settlement with Google for 2016, followinga month-long block over allegations that the firm had not made enough annualpayments, said Minister of Finance Sri Mulyani Indrawati.
Minister of Information and Communications Rudiantara affirmed thatAlphabet Inc, under Google Asia Pacific agreed on future tax payments, addingthat the tax deal might change regulations for online advertising business in thecountry.
The ministry will work with Indonesia’s investment coordinating board onthe regulations, he added.
Previously, in last September, the Southeast Asian country asked Googleto pay five years of back taxes, including the 2015 amount of more than 400million USD. However, the company showed proof that its revenue was far from the estimatesmade by the Indonesian tax authority.
Last year, Google also agreedto pay 130 million pounds (166 million USD) in back taxes to the UK government.
Recently, on June 27, theEuropean Union’s antitrust agency asked Google to pay a fine of 2.42 billion Euros(2.7 billion USD) for abusing its dominance as a search engine by giving an illegaladvantage to its own comparison shopping service. However, the company rejectsthe decision and is considering lodging an appeal. -VNA
