On Tuesday, Indonesia added 12 more companies, including social media company Twitter and video-conferencing site Zoom, to a list of internet-based businesses that must pay a 10 percent value-added tax on sales.
Indonesia had already announced that Alphabet’s Google Asia Pacific, Netflix, and Facebook among other tech companies would be liable to VAT in July.
Governments globally are seeking to ensure that social media giants are paying their fair share of taxes. Indonesia’s moves come amid a shift to more online business with increased remote working during the coronavirus and as the pandemic has hit government finances.
Among companies named on Tuesday were business networking site LinkedIn Singapore, two units of Twitter, Skype Communications, Zoom Video Communications, antivirus provider McAfee Ireland, and Microsoft Ireland Operations.
The companies must start charging VAT to advertisers and other customers from Oct. 1.
Non-resident foreign firms that generate annual sales of at least IDR 600 million for digital products and services in Indonesia from at least 12,000 users are required to pay the VAT, under rules introduced earlier this year.
Indonesia is experiencing a boom in its digital economy which is expected to reach $130 billion by 2025, a study by Google, Temasek Holdings, and Bain & Company predicts.