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Indonesia and Google Reach Tax Settlement

Tech giant Google has agreed to pay taxes, Indonesia’s Finance Minister has announced. Does this mean for the month-long dispute between the country and Google is finally resolved?

Finance Minister Sri Mulyani Indrawati recently revealed Indonesia and Google have settled the tax issue following months of public altercations due to reports the tech giant had failed to file annual payments to the government.

“We already have an agreement with them based on 2016. But we can’t disclose the figure,” Indonesia Finance Minister Sri Mulyani Indrawati said on Tuesday, June 13, as quoted by Reuters.

Google has reportedly missed paying taxes since September 2016, while most of its revenue obtained from Indonesia is believed to have been sent to its Asia Pacific headquarters in Singapore.

With Google’s Rp.11 trillion (US$827 million) annual income, the government said in September it would pursue the tech firm for five years in back taxes which could mean a bill for US$400 million for 2015 alone.

Despite the tax settlement, it remains unclear if the government will continue plans to target back taxes.

 

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Caranissa is an editor at Indonesia Expat. She occassionally writes, dances and performs on stage.


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