18 July 2017
INDONESIA: Singapore Banks Set to Share Detail of all Indonesian Holdings
The Indonesian government is set to gain access to financial data relating to any assets held by its citizens in Singapore’s banks and other financial institutions. The move follows Singapore’s signing of the Multilateral Competent Authority Agreement (MCAA), a pan-national treaty aimed at curbing tax evasion, a treaty that Indonesia has previously ratified.
While an exact date for implementation has yet to be announced, the formal exchange of information is expected begin in early 2018. The initiative, known as the Automatic Exchange of Financial Account Information programme, is seen as a key part of Indonesia’s continuing crackdown on tax evaders, allowing it to further 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.