medcom.id, Jakarta: The Directorate General of Tax (DGT) is studying tax potential from four global technology companies: Google, Twitter, Yahoo and Facebook.
Minister of Finance Bambang Brodjonegoro mentioned the four companies have representative offices in Indonesia. DGT has classified the offices as permanent establishments.
Bambang stated the government is formulating tax policy for digital economy industry. He argued currently the tax from the four companies is not proportional with the profit they make in the country.
"They pay tax but it is not proportional. Especially from the advertisement," said Bambang, Jakarta, Wednesday (4/6/2016).
Director General of Tax chief Ken Dwijugiasteadi mentioned the four companies should register their offices as permanent establishments. "They should pay tax in Indonesia because they make profit in Indonesia," said Ken.
Jakarta Tax Office chief Muhammad Hanif mentioned so far the offices only pay tax of their employees. "They do not pay tax as business entities," he added.
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