DGT and Australian Taxation Office Agree to Exchange Information

JAKARTA. The Directorate General of Taxes (DGT) cooperates with the Australian tax authority, the Australian Taxation Office (ATO). This cooperation is related to the automatic exchange of information on tax withholding slip of income tax (PPh).

With this agreement, the DGT will receive income information that Indonesian taxpayers receive from Australia on a regular basis.  So that it can strengthen the DGT database in increasing tax compliance.

This information can be used in the framework of risk analysis management (CRM), taxpayer compliance supervision and law enforcement in the field of taxation

Thus, in the end it is expected to encourage Indonesian taxpayers to fulfill their tax obligations voluntarily, especially in reporting their income and assets abroad.

This is an implementation of the exchange of information in the Double Tax Avoidance Agreement (P3B) or tax treaty.  Based on the DGT written statement, the cooperation agreement was signed on 11 August 2020 and 19 August 2020 virtually.

The exchange of information is in line with the global commitment to achieve transparency in the field of taxation.

As it is known, Indonesia is part of the countries that have agreed to carry out automatic exchange of tax data or Automatic Exchange of Information (AEoI). Until now, 103 countries have already participated in the automatic exchange of information.