Harsh Sanctions Awaits Non-Compliant Digital Platforms

Summary

The government ensures that over-the-top technology companies (OTT) or digital platform providers, such as Netflix and Spotify, have to pay Indonesian taxes. The Director-General of Taxation, Suryo Utomo, revealed that if they refused to collect the 10 percent value-added tax (PPN), the government would sanction them.

One of the sanctions, regulated in existing rules, is access restriction in Indonesian internet networks. It appears in the Finance Ministerial Regulation (PMK) No. 48/PMK.03/2020 on taxes on foreign or imported digital companies, issued last weekend.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and monthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.