How much tax does Google Indonesia pay?

It turned out that Google Indonesia only paid Rp 5 billion in taxes in 2015. This figure is far below the Directorate General of Taxes (Dirjen Pajak) estimate of Rp 450 billion. As reported by Kontan (5/4), the amount of tax paid by Google Indonesia was 25 percent of its taxable income of Rp 20.88 billion.

Based on the audited tax documents submitted to the Dirjen Pajak, the total revenue of this US-based technology company's subsidiary in 2015 reached Rp 187.5 billion, a 1.7 percent increase from the previous year.

Previously, the Directorate General of Taxes and Google Indonesia disagreed on the amount of tax that the internet search engine company from the United States should pay. According to the Directorate General of Taxes, the amount of tax Google should pay reached Rp 450 billion, based on the assumption of a company profit margin of Rp 1.6-1.7 trillion per year. However, based on the company's financial statements audited by Ernst & Young LLP, Google's tax was only Rp 5 billion.