Temporary Legal Basis Tax Data Exchange

JAKARTA. The Government confirms its participation on implementing the Automatic Exchange of Information (AEoI) in spite of the Government Regulation in Lieu of Law of tax data exchange is still in discussion phase. As a temporary legal protection, the Minister of Finance Sri Mulyani Indrawati has issued rules relating to the provision of financial information to the authorities of other countries.


In Regulation of Ministry of Finance Number 39/PMK.03/2017 regarding Procedures for Information Exchange Based on International Treaties signed on March 3, 2017, the AEoI provision on the financial information that will be implemented in 2018 has already regulated.


P2 Public Relation Director of Directorate General of Taxation Hestu Yoga Saksama stated that regulation regarding procedure of information exchange has been in the shelf, of which Regulation of Ministry of Finance Number 60 year 2014 that replaced with Regulation of Ministry of Finance Number 125 year 2015.


Furthermore, according to him during Thursday interviewed at Gedung Mar’ie Muhammad Directorate General of Taxation Jakarta (16/03); in line with the changes and provisions that must be accommodated on procedures for the exchange of information, revocation of previous regulation is needed considering the changes is above 50% its content. In newer version tax authorities is able to collect and exchange financial information from banks, capital markets, and insurances.


This rule regulates the exchange of information for Country by Country report (CbCR). Some time ago, the Minister has issued PMK 213 that obligates the taxpayer (WP) to provide transfer pricing documents. The new regulation provided a legal basis as a continuation of the signing of the Country by Country Competent Authorities Multilateral Agreement (CBC MCAA) in supporting CbCR exchange, which was signed on January 25, 2017 in France.


He added, “while the MCAA for financial info exchange has been signed in 2015 ago, Indonesia has declared its commitment to follow, nevertheless there is yet no legal basis until Regulation of Ministry of Finance Number 39/PMK.03/2017 issued.”


In this regulation, the exchange of information can also be done for other tax information outside of tax information that is set in the PMK.


The exchange of information, as known is to emphasize on information related to withholding tax on income paid to the subject of the Indonesian tax or withholding tax on income tax paid to the subject of the Partner Country or Jurisdiction Partners, Foreign Customer’s financial information, and CbCR.


“That means we accommodate that if there are other data. In the past, we never thought that CbCR is compulsory and interchangeable. Due to the OECD continue to be updated, while we are BEPS associate, so that if when there is a new update, we could have a legal basis.”, he said.


According to Hestu, in terms of Government Regulation in Lieu of Law regarding exchange of tax data that required a lot of preparation, this PMK was prepared first due to participation on AEoI required domestic legislation.


“The secondary regulation as improved from the previous one has issued prior the primary (Government Regulation in Lieu of Law), just like the OJK will change POJK 25 which is also secondary. Later on both regulation will work together.”, he added.






Source http://nasional.kontan.co.id/news/ini-payung-hukum-sementara-pertukaran-data-pajak

[translated RP]

Substances Of The Draft Omnibus Law On Taxation
Substances Of The Draft Omnibus Law On Taxation

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