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The
U.S. Trade Representative's office earlier this month said it
was investigating digital services taxes (DSTs) being adopted or
considered by several countries, such as Britain, Italy and
Indonesia.
Indonesia announced last month it would require big internet
companies to pay VAT on digital products and services -
including streaming services, applications and games - starting
July, though authorities have more recently pushed the deadline
to no later than August.
"The VAT plan is not the subject of the USTR letter. It took
issue with plans for corporate tax, which remains a subject of
discussions led by the OECD," Indrawati told a streamed
briefing.
The U.S. embassy in Jakarta could not immediately be reached for
comment.
Indrawati said Indonesia would not impose DST or corporate
income tax before the Organisation for Economic Co-operation and
Development (OECD) and G20 countries agree a global standard for
such taxes, likely later this year.
She noted that consumers were paying VAT when they bought a
product or a service, rather than companies.
The USTR has also been reviewing Indonesia's eligibility for its
Generalized System of Preferences trade facility since 2018 due
to concerns about market access for U.S. goods, services and
investment.
(Reporting by Gayatri Suroyo and Maikel Jefriando; Editing by Ed
Davies)
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