Jakarta. Global technology giant Google has paid back taxes it owned the Indonesian government since 2015 in full on Thursday (29/11), marking a new milestone in the country's efforts to rein in digital companies.
"A company with the initial 'G' has paid its taxes in accordance with the provisions of Indonesia tax legislation," Tax Director General Ken Dwijugiasteadi said on Thursday, as quoted by Antaranews.com
It was Ken's last day as tax chief before retiring and he said he had been waiting since the morning for the payment to be completed.
He declined to disclose the amount Google paid in back taxes, citing the confidentiality rule.
Indonesia is the fourth country after Britain, India and Australia that managed to get the tech giant to pay tax.
Google Indonesia, the company's local entity, used to book its advertising revenue under Singapore-based Google Asia Pacific.
However, the tax office argued that in terms of Indonesian income tax law, Google Indonesia can be classified as a permanent establishment of the Singaporean company, therefore all its revenue must be taxed here.
Ken said Google will continue to pay income tax and value added tax in Indonesia.
Other over-the-top services, such as Facebook and Twitter, are expected to follow suit.
"Many other companies have agreed to pay tax here. They are in the finalization stage," Ken said.