Google is expected to reach a tax settlement with the Indonesian Government in the next few weeks. The deal would see Google Indonesia pay back-taxes and fines, and agree to a new calculation of profits made in Indonesia.
A senior tax official said in September that Indonesia planned to pursue Google for five years of back taxes, and the company could face a bill of more than US$400 million for 2015 alone.
Most of the revenue generated by Google in Indonesia is booked at its Asia-Pacific headquarters in Singapore, according to the Indonesian tax office. Google Australia has recently announced plans to end a similar arrangement.
Indonesia launched a tax amnesty scheme in July to lure back billions of dollars stashed abroad to help narrow its budget deficit and fund an ambitious infrastructure program.
