Harsh Sanctions Awaits Non-Compliant Digital Platforms
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.