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Indonesia Investigates PE Status of Online Advertisers

11 April 2016

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Approved Changes

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Indonesia

On 7 April 2016, Indonesia's Ministry of Finance announced that it is investigating the tax status of large online advertisers doing business in the country, including Facebook, Google and Twitter. According to the announcement, these companies have business units in Indonesia that should be considered permanent establishments, and should be registered and taxed as such on their advertising income. Regarding Indonesia's position on the taxation of the digital economy overall, the announcement states that if a company benefits from a country it should be taxed in that country, including the obligation to pay taxes in Indonesia.