"The Tax Directorate General has used various laws in Indonesia to confirm that all activities carried out online or e-commerce platform are taxable objects in Indonesia," Sri Mulyani said.Jakarta (ANTARA News) - Googles economic activities in Indonesia are subject to taxes, Indonesias finance minister Sri Mulyani stated here Friday.
She made the statement in a press conference at the presidential office in response to reports of Google Indonesias objection to paying taxes.
All countries are facing tax problems with Google and various kinds of electronic transactions, she admitted.
"The Tax Directorate General has used various laws in Indonesia to confirm that all activities carried out online or e-commerce platform are taxable objects in Indonesia," she said.
Taxpayers may have a different argument but the Republic of Indonesia has had a tax law, the minister said.
"If there are differences we can certainly resolve them bilaterally or through a tax tribunal," she said.
Entities conducting business in Indonesia must set up what is called "Permanent Business Entity" and that would make their business activities in the country a tax object, she said.
"I admit this issue is faced by many countries, and it is not an easy matter," she said.
She would continue making efforts in line with the laws to make entities conducting economic activities in Indonesia tax payers, so they can pay their taxes according to the existing law, Sri Mulyani said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
