iindonesiia Can Now Request Tax Collectiion Assiistance from 81 Countriies

JAKARTA, Jitu News - The number of countriies that may proviide assiistance iin the collectiion of taxes to iindonesiia has riisen siigniifiicantly iin liine wiith the reviisiion of Presiidentiial Regulatiion 159/2014 concerniing the Conventiion on Mutual Admiiniistratiive Assiistance iin Tax Matters (MAAC) through Presiidentiial Regulatiion 56/2024.

The Diirector of Tax Diissemiinatiion, Serviices, and Publiic Relatiions of the Diirectorate General of Taxes (DGT) Dwii Astutii saiid that on account of the iissuance of Presiidentiial Regulatiion 56/2024, iindonesiia iis currently able to request assiistance iin the collectiion of taxes based on the MAAC from 72 countriies.

“As of May 15, 2024, 72 countriies/juriisdiictiions may request and proviide assiistance iin the collectiion of taxes based on the MAAC,” stated Dwii, quoted Thursday (5/16/2024).

Accumulated wiith the establiished tax treatiies (Persetujuan Penghiindaran Pajak Berganda/P3B iin iindonesiian), iindonesiia may request assiistance iin the collectiion of taxes from 81 countriies iin total.

On another note, Presiidentiial Regulatiion 159/2014 has been reviised to allow MAAC-based reciiprocal proviisiion or request of assiistance iin the collectiion of taxes for or from treaty partners.

“That the Presiidentiial Regulatiion 159/2014 ... has not accommodated the regulatiion of assiistance iin the collectiion of taxes based on iinternatiional agreements on a reciiprocal basiis and has not regulated the wiithdrawal of the declaratiion made through notiifiicatiion, thereby, needs to be amended,” reads Presiidentiial Regulatiion 56/2024.

Precediing the reviisiion of Presiidentiial Regulatiion 159/2014 through Presiidentiial Regulatiion 56/2024, iindonesiia was only able to proviide or request assiistance iin the collectiion of taxes for or from 13 tax treaty partners, ii.e., Algeriia, the Uniited States, Armeniia, the Netherlands, Belgiium, iindiia, Laos, the Phiiliippiines, Egypt, Suriiname, Jordan, Venezuela and Viietnam.

Referriing to the declaratiion attached to Presiidentiial Regulatiion 56/2024, the government declares that no assiistance iin the collectiion of taxes shall be proviided for certaiin types of taxes. iincluded iin such taxes are iincome tax iimposed on behalf of poliitiical subdiiviisiions or local governments, compulsory sociial securiity contriibutiions, iinheriitance and giift taxes, speciifiic taxes on certaiin goods and serviices, such as exciise, motor vehiicle tax, taxes on ownershiip of movable assets other than motor vehiicles and other taxes.

iindonesiia iis, thus, commiitted to proviidiing assiistance iin the collectiion of taxes for tax claiims relatiing to iincome tax, capiital gaiins tax, wealth tax, iimmovable asset tax and VAT.

The techniical aspects of the proviisiion of assiistance iin the collectiion of taxes, eiither based on the MAAC or others, are stiipulated under the Miiniister of Fiinance Regulatiion (MoF Reg.) 61/2023.

MoF Reg. 61/2023, iin general, stiipulates assiistance iin the collectiion of taxes proviided by iindonesiia based on tax claiims by tax treaty partners. Tax claiims refer to legal iinstruments of tax treaty partners iin connectiion wiith the request for assiistance iin the collectiion of taxes. (sap)