WORLD Indonesia plans to apply tax on digital business transaction


Indonesia plans to apply tax on digital business transaction


17:29, June 13, 2019


File photo: VCG
JAKARTA, June 13 (Xinhua) -- The Indonesian government is planning to impose tax on digital businesses transactions in a bid to ratchet up state's revenue, Finance Minister Sri Mulyani Indrawati said here.

The move came following a recent consensus of finance ministers and central bank governors of the G20 members to apply tax on digital business activities during their meeting in Fukuoka of Japan. The meeting also signified the need of international cooperation to prevent tax evasion.

Mulyani stressed that every business activity in the country must be taxed in accordance with regulations.

On the way of gauging the amount of the tax for each digital business transaction, Mulyani said, one of the ways is that it will be calculated equal to that in determining tax conventionally.

"For the firms ascribe as digital, fellows (in tax office) has a basis for the calculation," she said.

As not all of the companies operating digitally have a representative office in Indonesia, Mulyani said that one of the ways being approached to calculate the amount of tax is done based on how often the business transaction they have made or how big the volume of the transaction is in one country.

The tax could be applied fairly based on the information of sales, advertisement and other data, Mulyani said.

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