JAKARTA, June 14 (Reuters) - Alphabet Inc’s Google Asia Pacific headquarters has agreed on future tax payments with the Indonesian government, the country’s communications minister said on Wednesday.
Finance Minister Sri Mulyani Indrawati hd said on Tuesday that Indonesia had reached a tax deal with Google for 2016, following a months-long dispute over allegations that the search giant had not made enough annual payments.
“On the solution for future taxes, they (Google Asia Pacific) have agreed with the government,” said Rudiantara, Indonesian Minister of Communications and Information, who has oversight on internet-based companies operating in the country.
This may be subject to changes in Indonesia’s regulation for the advertising business, said Rudiantara, who goes by one name.
Google’s Asia Pacific headquarters is in Singapore, while its Indonesian entity, PT Google Indonesia, was incorporated in 2011.
Google did not immediately respond to requests for comment.
Indonesia’s tax office previously alleged that Google had paid only a fraction of the total income and value-added taxes owed. The company said that it had paid all applicable taxes. (Reporting by Cindy Silviana and Jakarta Newsroom; Additional reporting by Eveline Danubrata and Gayatri Suroyo; Writing by Eveline Danubrata; editing by Alexander Smith)