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The country’s Minister of Finance reveals the legal status of companies such as Facebook and Twitter. Signs of impending trouble?

In February, the Indonesian government first announced plan to set up regulation for foreign Internet companies to set up a permanent venture in the country, citing taxation as one of the reasons behind the regulation.

Promising late March as the deadline for a decision to be announced, this week Minister of Finance Bambang P. S. Brodjonegoro updated by revealing the legal status of several Internet companies, from social media websites and streaming and messaging providers.

Facebook and Twitter came out as those who have not set up a permanent venture in Indonesia, indicating that there is a number of taxes that the companies have not paid to the country.

“To confirm that, currently there is an ongoing investigation by the Regional Office of Directorate General of Tax in Jakarta,” Brodjonegoro said as quoted by Kompas Tekno.

Twitter is currently registered in Indonesia as a representative of its Asia Pacific office, a status it first received on April 22, 2015. As for Facebook, it is currently registered as a representative of its Singapore office, a status received in February 10, 2014.

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Other Internet companies that are being highlighted in the update are Yahoo! and Google, which were reported to have secured a permanent venture status in Indonesia.

Yahoo! received its status as a permanent venture in Indonesia since 2009, while Google received theirs in 2011.

However, there will still be investigation targetted at the two companies to ensure that they have paid their taxes properly.

“Incomes that are generated from Indonesia, including advertisement, are supposed to go into our Income Tax. This is the investigation that the Regional Office of Directorate General of Tax in Jakarta is conducting now,” he stated.

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Image Credit: Gratisography.com

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