Google reaches deal with Indonesian government over tax disputeStaff Writer | June 13, 2017
Indonesia and Google have reached a deal in a long-running tax dispute, the country's finance minister said Tuesday.
Technology $73 billion in taxes
"We've had a discussion with them and there has been an agreement based on the 2016 tax year," Finance Minister Sri Mulyani Indrawati said, but wouldn't reveal the amount.
Indonesia has vowed to examine the tax records of global internet giants such as Google, Facebook and Twitter as it seeks to plug revenue shortfalls.
The Communications & Information Ministry said Google and Facebook were responsible for 80% of Indonesia's total digital advertising revenue, worth about $800 million in 2015, but that their incomes are not properly taxed.
Indonesia is one of the biggest markets for Facebook and Twitter.
In December, the tax office threatened to take Google to court after it rejected a settlement offer by Google on the ground that the amount was too small.
Google at that time said it had paid all applicable taxes and was cooperating fully with the Indonesian government. ■