VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The G20's clear framework for the two pillars of international taxation will add to Indonesia's income, Center of Reform on Economics (CORE) Indonesia economist Yusuf Rendy Manilet has said.

"A clear framework on international tax will certainly benefit Indonesia in terms of potential income," he told ANTARA here on Monday.

The meeting of the G20 Finance Ministers and Central Bank Governors has resulted in a 14-point communiqué, which includes international taxation.

According to Manilet, international taxation has two pillars, the first is the imposition of taxes in the digital sector and the second is global minimum taxation for international companies.

These two pillars will be effective at the global level, starting from 2023, he added.

"What is proposed in the international tax pillars is actually a predetermined agenda, especially for BEPS and AEoI," Manilet said.

Through the regulation, Indonesia's income will be boosted through many avenues, such as the imposition of taxes in the digital sector, he highlighted.

This can happen because of the large potential of the digital economy, he said adding, Indonesia has potential as a market for digital ecosystem development over the next few years.

While the imposition of corporate income tax on digital companies would intersect with the tax treaty among Indonesia, developing countries, and countries where the digital corporates originate, he noted.

The tax treaty can continue to be discussed in the G20 forum, he added.

However, there will be challenges to implementing the corporate income tax, such as having to stress that this policy is not a unilateral step by the countries where the digital companies originate, he said.

"The challenge is how the corporate income tax implementation is not deemed as a unilateral step," he added.  (Antaranews)