22 May 2017
INDONESIA: Bank Accounts Now Open to International Tax Scrutiny
Indonesian tax authorities are to be allowed to access accounts held by both citizens and overseas residents in the country’s banks and other financial institutions. This change will apply to both domestic and foreign financial institutions operating in Indonesia and has been introduced to meet the requirements of the Automatic Exchange of Information (AEOI) agreement, a pan-national treaty aimed at curbing tax evasion.
The country’s participation in the AEOI programme will enable its tax officials to obtain financial data on Indonesian taxpayers in other member jurisdictions in exchange for data on foreign taxpayers resident in Indonesia. This is expected to become a key part of the country’s continuing crackdown on tax evaders and allow it to widen its tax-base following the conclusion of its nine-month tax amnesty.
For further details on the tax amnesty, see INDONESIA IN-DEPTH: Uptake and Consequences of the Repatriated Funds Tax Amnesty.