Reply to post: Re: How would the tax be calculated?

Indonesia starts taxing Minecraft, Skype, Zoom and Twitter

DS999 Silver badge

Re: How would the tax be calculated?

It is so easy for the ad based companies to shift things around. If a multinational pays in US to advertise worldwide how much of that fee should be allocated to the customers in Indonesia? If you do it by the percentage of the total, they'll argue that US customers spend more so their eyeballs are more valuable and thereby lowball the revenue from Indonesia. Meanwhile in the UK where the eyeballs are just as valuable as those in the US they'll want to do it by percentage of the total since that's the best way of lowballing it.

At least if a company sells a subscription, or a product, or a service to an Indonesian customer there is no argument about how much they spent and therefore what the tax should be. I predict they will have a lot more hassle trying to get money out of Google and Facebook than they will out of Microsoft and Apple for that reason.

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