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13 countries to help Indonesia pursue overseas taxpayers
Indonesia has gained international cooperation to pursue recalcitrant taxpayers beyond its borders.
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A clerk counts US dollar banknotes on Sept. 27, 2021 at a money changer in Ankara. (REUTERS/Cagla Gurdogan)
T
hirteen countries have agreed to assist Indonesia with collecting taxes overseas, allowing the country to go beyond its borders in pursuit of tax evaders, the taxation directorate general has said.
The countries in the reciprocal deal are Algeria, Armenia, Belgium, Egypt, India, Jordan, Laos, the Netherlands, the Philippines, Suriname, the United States, Venezuela and Vietnam.
“These tax payables are those that have permanent legal force. It will be reciprocal. Indonesia has to assist [these] countries in the same matter,” Yon Arsal, expert staff on tax compliance for the finance minister, told a media gathering held on Wednesday by the Bali tax office.
Read also: New tax law expected to raise tax revenue by at least 9%
A national tax law only applies within each country, so cross-border enforcement of tax obligations requires international cooperation through a bilateral or multilateral treaty.
In Indonesia’s case, the tax office’s tax assessment letter (SKP) is sent only to domestic taxpayers and is not recognized overseas.
Tax office spokesperson Dwi Astuti told reporters that the international tax cooperation was made possible by the Tax Harmonization Law passed in October, before which the government lacked the legal framework to enable mutual assistance in tax collection.
