On Wednesday, the communication minister has announced that “Google Asia Pacific headquarter has agreed on the future tax payment with the Indonesian government.
Finance Minister Sri Mulyani Indrawati said that “In 2016, both the Indonesian government and Google Inc had signed a Tax treaty, following after months of dispute over the alleged lack of annual payments by the search giant.
Google’s tax dispute with Indonesia is seen as an example of how Southeast Asia’s largest economy government can track other technology companies such as Facebook Inc. and Twitter Inc with taxpayers.
“They (Google Asia Pacific) agreed with the government on the solution of future taxes,” said Rudiantara, Indonesia’s communications and information minister, who is in the custody of internet-based companies operating in the country.
This could be affected by the changes in Indonesian advertising regulation, Rudiantara said, going with a name.
But, Rudiantara failed to comment on Google’s agreement with Indonesia on taxation for previous years.
Lat year in September, the senior tax officer said that Indonesia plans to follow Google with tax returns for five years, and if the company missed payments, it could face more than $ 400 million in billing for 2015.
Indonesia is keen to speed up tax collection activities to narrow the budget gap and finance an ambitious infrastructure program. Other governments around the world want to underestimate what they have seen to avoid corporate tax.
During the past year, Thailand has made plans to tighten tax collection rules for Internet and technology companies, and Google has agreed to pay £ 130 million ($ 164 million) for tax incentives to investigate by the UK tax authority.