Indonesia has added eight more technology companies to a list of “VAT collectors” – businesses that must charge 10 percent value-added tax (VAT) on all goods and services sold in the country – following the implementation of a digital tax policy earlier this year.The Finance Ministry’s Taxation Directorate General on Friday added Alibaba Cloud (Singapore) Pte. Ltd., Microsoft Corporation, Nexmo Inc. and Microsoft Regional Sales Pte. Ltd. to the list, along with GitHub Inc, UCWeb Singapore Pte Ltd, To The New Singapore Pte. Ltd. and Coda Payments Pte Ltd.“With these appointments, the companies will start to charge VAT for the products and services they sell to Indonesian consumers on Nov. 1, 2020,” the tax office said in a statement. The country collected Rp 1.03 quadrillion in state revenue in August, or 60.8 percent of this year’s target, marking a 13.1 percent year-on-year (yoy) decrease from a drop in both tax and non-tax revenue.Tax revenue, the main income source for the government, fell 15.6 percent yoy to Rp 676.9 trillion due to a sharp fall in corporate tax and import tax amid slowing economic activities.Indonesia was a huge market for digital products and services, and state revenue was expected to increase gradually as the government appointed more tech firms as “VAT collectors”, said Bawono Kristiaji, a research partner at the Danny Darussalam Tax Center (DDTC).“State revenue will also increase significantly from [collecting] corporate income tax from these digital firms,” Kristiaji told The Jakarta Post. He added that the Organization for Economic Cooperation and Development (OECD) was due to release a digital tax “blueprint” for countries soon.“This would be considered the global consensus and has the potential to benefit Indonesia going forward. Taxing tech firms is one of the best tax policy options to boost state revenue amid the coronavirus pandemic,” he said.Topics : Since July, the Taxation Directorate General has appointed 36 companies as “VAT collectors” to charge VAT on their goods and services in the country and pay it to the government.Non-resident digital service providers that generate minimum sales of Rp 600 million (US$40,851) per year or Rp 50 million per month from at least 12,000 users in Indonesia are required to charge VAT under the Law No. 2/2020.Technology behemoths Google Asia Pacific, Netflix and Facebook are among the “appointed VAT collectors”. Meanwhile, LinkedIn Singapore, two subsidiaries of Twitter, Skype Communications, Zoom Video Communications, McAfee Ireland, and Microsoft Ireland Operations started charging 10 percent VAT on Oct. 1.Governments around the world have been trying to ensure that tech giants pay their fair share of taxes in the countries where they operate, albeit without a physical presence. Indonesia’s move to do the same have come amid falling state revenues and an increasing shift to online platforms and remote work during the coronavirus health emergency.
Ramires and Eden Hazard gave the Blues a 2-0 lead which Shaun Maloney halved after 58 minutes, before Lampard’s 86th-minute strike saw him move to within four of Bobby Tambling’s club goalscoring record of 202. Substitute Marko Marin then added a stoppage-time fourth as Chelsea. “We deserved to win,” Benitez said. “To win is something you have to do. Top sides, if you want to win something, you have to be consistent winning. It’s normal. But it’s not the end of the world if you draw a game you deserve to win. The problem for me would be if we don’t create chances; we create chances every game.” Press Association Rafael Benitez expressed delight after Frank Lampard scored his 198th Chelsea goal in a 4-1 victory over Wigan to end a four-match winless run and ease the pressure on the interim boss. He went on: “We score goals. We’re making some mistakes, but we have a lot of positives. Today four goals could be six goals at the end.” The result is likely to at least delay Chelsea owner Roman Abramovich, who is not renowned for his patience, reaching for the trigger. Benitez was unfazed. “It was just speculation,” he said. “Nobody is in contact with the owner to find out if he says this or that. It is my job: try to win every game. That’s it, so I have to concentrate on that.” There was a moment of alarm when, with Chelsea leading 2-1, the visitors had a penalty appeal declined after Ronnie Stam’s shot struck Ashley Cole on the arm and Wigan boss Roberto Martinez reckons officials should be given further guidance for such incidents. “The referees need a bit of clarity,” Martinez said. “I tell my defenders not to put themselves in a position where it could be a penalty. The defender should have had his arm ‘attached’ to his body. Clearly the arm wasn’t. “But it’s down to the interpretation of the referee. It’s a difficult call.”