Reply to post: Good luck with that one...

Indonesia starts taxing Minecraft, Skype, Zoom and Twitter

aki009

Good luck with that one...

I seriously doubt this tax will bring in more rupiah than its management will consume.

Companies that are domiciled in Indonesia already pay local taxes when required, and would perhaps pay more with more aggressive revenue allocation requirements.

But to levy some sort of nebulous 10% tax on multinationals that are not domiciled in Indonesia will be a loser from day 1. Even if a company wanted to comply paying it, the consumer level will quickly learn that selecting say Malaysia instead of Indonesia as ones claimed home will provide a 10% discount.

Add to that the expected level of company compliance with a poorly thought through tax scheme, and they might as well not have tried.

I'm guessing it's election season in Indonesia, too.

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