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Indonesia imposes 10-pct VAT on eight more foreign firms

ndonesia has added eight more foreign digital companies to a list of businesses that must pay a 10 percent value-added tax (VAT) on sales.
Indonesia imposes 10-pct VAT on eight more foreign firms ảnh 1Illustrative image (Photo: Internet)
Jakarta (VNA) - Indonesia has added eight more foreign digital companies toa list of businesses that must pay a 10 percent value-added tax (VAT) on sales.

The companies named were Alibaba Cloud (Singapore) Pte Ltd, GitHub, Inc.,Microsoft Corporation, Microsoft Regional Sales Pte. Ltd., UCWeb Singapore Pte.Ltd., To The New Pte. Ltd., Coda Payments Pte. Ltd, and Nexmo Inc.

In a statement, Director-General of the Indonesian Finance Ministry’s Directorate Generalof Taxes SuryoUtomo said these companies must start charging VAT on digital products andservices to advertisers and consumers from November 1.

Last year, Indonesia announced that Google, Facebook, Amazon, Twitter and Netflix,which are not registered in Indonesia but have revenue from consumers in thecountry, would be liable to VAT.

In April, the Indonesian government issued a digital tax regulation for globaltechnology companies in the framework of a law on financial policies inresponse to the COVID-19 pandemic.

Accordingly, all foreign companies that made annual sales of 600 millionIndonesian rupiahs (40,540 USD) from their digital products and services in Indonesia,or reported at least 12,000 visits per year will have to pay a 10 percent VAT./.


VNA

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