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

Indonesia starts taxing Minecraft, Skype, Zoom and Twitter

Anonymous Coward
Anonymous Coward

Re: Good luck with that one...

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

Regardless, tax evading multinationals gain a very large competitive advantage, often as big as the profit the same local company could make. This means that if you are a local with exactly the same costs and sell price, Google/Amazon etc, will still make a good profit, while you are losing money.

Even without tax evasion , US companies are able to make capex without paying the tax they would have to pay on the same investments in the US, or which local competitors pay. This is a signifcant factor making US companies unfairly competitive, and facilitates loss making anti-competitive market invasion.

So even if this makes not a single rupiah, it is beneficial to Indonesia in the long run. And to the rest of us.

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