Tax Collection Cooperation Policy Revised: A Detailed Overview

The government released new provisions related to the ratification of the convention on mutual administrative assistance in tax matters. 

The provision in question is Presidential Regulation (Perpres) Number 56 of 2024 which takes effect on 22 April 2024. The regulation amends the previous provision regarding the ratification of the convention on tax collection assistance, namely Presidential Regulation Number 159 Year 2014. 

The main changes include two things. First, in the latest regulation, the government presents a clause regarding tax collection assistance based on reciprocal international agreements. Second, in the latest regulation, there is now a clause on the withdrawal of a declaration made through notification.

This is in line with Article 8 paragraph (3) of Law Number 24 of 2009 on international agreements. The regulation states that the government can withdraw the statement at any time, in writing or according to the mechanism stipulated in the international agreement.

In addition, the withdrawal of the statement has also been contained in Article 30 paragraph (4) of the Convention on Mutual Administrative Assistance in Tax Matters.

For the revision of the clause regarding the withdrawal of the statement, there are additional provisions listed in Article 1, so that it now consists of two paragraphs. Overall, Article 1 reads as follows:

(1) To ratify the Convention on Mutual Administrative Assistance in Tax Matters, which was signed on November 3, 2011, in Cannes, France, and its original texts in English and French as well as its translation in Indonesian along with the declaration as attached, are an integral part of this Presidential Regulation.

(2) If there is a change in the declaration listed in the Annex based on this Presidential Regulation, the change in the declaration shall be submitted through a written statement or according to the procedures stipulated in the international agreement in accordance with the provisions of laws and regulations.

In addition to the body, the government also revised the annex, specifically letter B so that it reads:

The Government of the Republic of Indonesia declares that it reserves the right not to provide assistance in the collection of various tax claims, or collection related to administrative fines, provided for in Articles 11 through 16 of the Convention, for all taxes provided for in Article 2 paragraph (1) letter b.i, letter b.ii, letter b.iii. A, D, E, F, G, and b.iv of the Convention.

With the amendment of the provisions in letter B of the annex, the right of the Indonesian government not to provide assistance (reciprocal) becomes more external. 

Because, it is not only related to Article 11 to Article 16 of the Convention, as stated in letter B of the Attachment to the previous regulation. Rather, it includes several more specific types of taxes as stated in Article 2 paragraph (1) letter b.i, letter b.ii, letter b.iii. A, D, E, F, G, and letter b.iv of the Convention. (ASP/KEN)