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Tax Avoidance in Advertising
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Tax Avoidance in Advertising

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· 4 minutes read
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A montage of three file photos shows (from top): the Google logo displayed on a screen and reflected on a tablet on 29 April 2018 in Paris, France; the Twitter logo and icons displayed on a computer screen on 23 March 2018 in Beijing, China; and the Facebook logo displayed on a screen and reflected on a tablet on 29 April 2018 in Paris, France.

JAKARTA, KOMPAS — The allocation of advertising spending continues to shift from conventional to digital media. However, a number of parties have questioned unequal treatment regarding tax matters, which mostly favor the platforms belonging to digital technology companies abroad.

Advertising has become one of the sectors affected by the change in the digital economic landscape. The platform, content and business model of advertising has grown and become complicated following the rapid development of over the top (OTT) internet application services.

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