REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government will continue to hold discussions on the imposition of taxes on Google, Chief Economic Minister Darmin Nasution stated. "I think this is a tax issue, and we have not yet completely settled it with Google, similar to that in other countries. Hence, dialog and negotiations must be held," the coordinating minister for economic affairs noted here on Thursday.
According to Nasution, a decision regarding imposing taxes on Google will be made by a team that will hold negotiations. The chief economic minister remarked that the Directorate General of Taxation Ken Dwijugiasteadi needs to conduct thorough and complete negotiations to find the right formulation.
Dwijugiasteadi made assurance on Wednesday that he will summon Google representatives to confirm the data it submitted regarding the company's revenues in Indonesia. "I have the data, so I will seek their confirmation on whether the figures that they submitted are accurate," Dwijugiasteadi pointed out.
Also read: Tax office to summon Google to clarify data on revenue
He did not mention when the summons would be issued, but the agenda for the meeting has been decided due to Google's history of tax evasion. The authorities have sought a copy of the electronic data relating to Google's revenues from advertisements.
He also expressed hope that Google will respond to the summons, so the process of paying income tax on its revenues, which had already been significantly delayed, would be completed quickly.
Dwijugiasteadi said that every company operating and earning revenue in Indonesia is obliged to meet its tax obligations and contribute appropriately by paying the right amount of taxes to the state. "Regulations must be met, and my job is to enforce them accordingly. I do not threaten or use force," he added.
Head of the Jakarta regional office of the Directorate General of Tax Muhammad Haniv noted that Google has yet to submit additional financial reports that they had requested regarding revenue collected in Indonesia. "We cannot fully trust their statements, as we are still waiting for further supporting documents. Their income from sources, such as pay per click and other applications, are yet to be accounted for," he pointed out.
He further questioned Google's reluctance to be listed as a permanent company in Indonesia, as it is already operating several of its servers in the country. "They already have servers in Indonesia. That is the physical evidence. Physical presence is required for a company to be permanently established," Haniv remarked.
According to Dwijugiasteadi, Google was registered as a legal entity in Indonesia at the Tanah Abang Tax Office III in Central Jakarta as a foreign investment company in September 15, 2011, as a subsidiary of Google Asia Pacific Pvt. Ltd in Singapore.
Based on the Indonesian income tax law, Google must be declared as a permanent company, and all its revenue or income within Indonesia must be taxed.
However, Google has rejected further tax inspections from the authorities, and it will not take the status of a permanent company, despite its revenue reaching trillions, with the majority coming from advertisements.
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