29 Feb '16, 9am

#Indonesia says Internet giants need to pay tax or face blockages

JAKARTA (Reuters) - Global Internet-based firms could have their services blocked in Indonesia if they do not obtain "permanent establishment" status in the country and pay Indonesian tax, government officials said on Monday (Feb 29). Finance Minister Bambang Brodjonegoro told reporters all Internet-based services must have a local presence in the form of a representative office or a full-fledged company. "All have to create a permanent establishment, like the contractors for the oil sector, so they can be taxed," he said. The minister did not name specific Internet firms that would be impacted. Separately, Communications Ministry spokesman Ismail Cawidu told Reuters his ministry aims to issue a regulation in March containing rules to apply to streaming and messaging providers as well as social media websites. Indonesians are huge users of Google and social media sites. Th...

Full article: http://www.straitstimes.com/asia/se-asia/indonesia-says-i...

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