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Indonesia wants tech firms to pay VAT

Indonesia is preparing a bill that will make tech firms such as Google and Amazon pay value added tax (VAT), according to Finance Minister Sri Mulyani Indrawati.
Indonesia wants tech firms to pay VAT ảnh 1Finance Minister Sri Mulyani Indrawati (Source: straitstimes.com)

Jakarta (VNA) – Indonesia ispreparing a bill that will make tech firms such as Google and Amazon pay valueadded tax (VAT), according to Finance Minister Sri Mulyani Indrawati.

She said such companies will be considered a“permanent establishment” liable for VAT in Indonesia regardless of whetherthey have a physical office in the country or not.

In a recent statement, the minister said the VATcollection was because these firms have a significant economic presence inIndonesia although they do not have a branch in the country.

She cited Google, Amazon and Netflix as examplesof companies to be affected by the upcoming rules.

The VAT rate in Indonesia is currently 10percent, imposed on most products and services.-VNA
VNA
#Indonesia #tech firms #Google #Amazon #Netflix #pay value added tax (VAT) #Finance Minister Sri Mulyani Indrawati #products #services #Vietnamplus #Vietnam News Agency Indonesia
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