If Netflix wants to obtain a but, the company must obey local regulations, such as opening an office and hiring employees. Furthermore, it must also obey tax regulations, which means every transaction with Netflix in Indonesia will be taxed.
According to Kompas.com, the obligation to have a business license also applies to other over-the-top Internet-based services, such as Google and Facebook.
These permanent businesses are required to pay corporate income tax and value added tax for every transaction made in Indonesia.
Netflix’s video-streaming service went live in more than 130 countries, including Indonesia, last Wednesday as chief executive Reed Hastings aimed to counter slowing growth in the US.
Indonesian users can choose from three monthly subscription plans on Netflix, with the basic plan priced at Rp 109,000 ($8) per month.
