JAKARTA (Reuters) – Alphabet’s Google is expected to reach a tax settlement with the Indonesian government in the next few weeks, people familiar with the matter told Reuters.
Under the settlement, Google will pay back taxes and fines, and the search giant will have to agree to a new calculation of profits made in the country, said one of the people, who declined to be named as the information was not public.
A tax office spokesman declined to comment. A Google spokesman also declined to comment.
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 $400 million for 2015 alone if it were found to have avoided payments.
Most of the revenue generated by Google in Indonesia is booked at its Asia Pacific headquarters in Singapore, according to the tax office.
(Reporting by Gayatri Suroyo and Eveline Danubrata; Editing by Muralikumar Anantharaman)