Jakarta - The formation of domestic taxes is one of the major economic effects of the Agreement on Reciprocal Trade (ART), also known as the trade agreement on reciprocal tariffs, between Indonesia and the United States (US).
Digital services taxes (DST) are a crucial problem that the Indonesian government must follow under the Agreement Between the United States of America and the Republic of Indonesia on Reciprocal Trade.
Indonesia is not allowed to levy digital services taxes or other discriminatory levies on US corporations, according to Article 3.1 of Section 3 on Digital Trade and Technology.
Digital services taxes (DST) are a crucial problem that the Indonesian government must follow under the Agreement Between the United States of America and the Republic of Indonesia on Reciprocal Trade.
Indonesia is not allowed to levy digital services taxes or other discriminatory levies on US corporations, according to Article 3.1 of Section 3 on Digital Trade and Technology.
As a result, Indonesia is prohibited from creating or enforcing digital tax laws that specifically target US tech firms like Netflix, Google, Meta, and Amazon.
It's crucial to realize, though, that this agreement does not negate Indonesia's ability to levy taxes on digital economic activity. Regardless of a company's nation of origin, the government can nevertheless levy universal, nondiscriminatory taxes on it.According to Article 3.1 of the agreement, Indonesia will not establish a tax on digital services or any other tax that discriminates against US businesses, either legally or in practice.
It's crucial to realize, though, that this agreement does not negate Indonesia's ability to levy taxes on digital economic activity. Regardless of a company's nation of origin, the government can nevertheless levy universal, nondiscriminatory taxes on it.According to Article 3.1 of the agreement, Indonesia will not establish a tax on digital services or any other tax that discriminates against US businesses, either legally or in practice.
In addition to prohibiting targeting US technology companies, Article 3.5 also states that Indonesia will support the swift and unconditional multilateral adoption of a permanent moratorium on customs duties on electronic transmissions in the WTO and that it is not allowed to impose customs duties on electronic transmissions, including electronically transmitted content.For added clarity, Article 3.5 of the agreement document states that Indonesia may impose internal taxes, fees, or other measures on electronic transmissions in a way that does not conflict with Articles I and III of the GATT 1994 or Articles II and XVII of the WTO General Agreement on Trade in Services.
Post a Comment