Signing The MoU on Data Exchange, DGT Can Peek at Indonesian Citizens' Assets in Argentina

JAKARTA. The Indonesian government through the Directorate General of Taxes (DGT) collaborated on data exchange with the Argentine tax authorities, on Wednesday (7/2022).

The agreement was contained in a Memorandum of Understanding (MoU) signed by the Director General of Taxes Suryo Utomo, as the Indonesian Competent Authority (CA), and Carlos Daniel Castagneto, as the Argentine CA.

The cooperation will complement the previous agreement between the two countries through the Multilateral Competent Authority Agreement (MCAA) in 2018 and is part of the Automatic Exchange of Information (AEoI) program.

The difference is, if exchange cooperation through the MCAA only covers financial information in the Common Reporting Standard (CRS), the latest MoU also includes non-financial information in the CRS.

Thus, now every year the Indonesian tax authorities can obtain information regarding assets including capital and income of Indonesian taxpayers residing in Argentina, including Income Tax (PPh) that has been withheld or withholding tax.

For this reason, the existence of this information will strengthen the DGT database and make it easier for tax authorities to monitor taxpayer compliance. Including implementing law enforcement in the field of taxation.

For information, the cooperation agreement on exchanging financial information for taxation is an implementation of Minister of Finance Regulation Number 70/PMK.03/2017 on technical guidelines regarding access to financial information for tax purposes.

The regulation was last amended by PMK Number 19/PMK.03/2018. Meanwhile, currently, Indonesia has established cooperation in the form of MCAA with 113 tax authorities.