Indonesia wants tech firms to pay VAT hinh anh 1Finance Minister Sri Mulyani Indrawati (Source: straitstimes.com)

Jakarta (VNA)
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.

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

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

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

The VAT rate in Indonesia is currently 10 percent, imposed on most products and services.-VNA
VNA