New regulation supports AEOI implementation, analysts say

Analysts are pointing to Finance Ministerial Regulation No. 19/2018, which was recently issued by Finance Minister Sri Mulyani Indrawati, as technical guidance to support global transparency in taxation.

Economist Bawono Kristiaji said the regulation supported the implementation of the Automatic Exchange of Information (AEOI) agreement, which was signed by 100 countries, including Indonesia.

“This regulation was issued to highlight the importance of financial institutions in supporting the movement on taxation transparency by requiring the institutions to register to the director general of taxation,” Bawono said in Jakarta on Sunday.

It was the second revision to ministerial regulation No. 70/2017 on technical guidance on financial information access for taxation.

Meanwhile, Tax Center fiscal researcher Danny Darissalam said it was a secondary regulation that was needed to guarantee the effectiveness of Indonesia’s involvement in the AEOI.

“The exchange of information refers to the common reporting standard, which is regulated under the international agreement,” Danny said as reported by Antara.

There are 20 revised items in regulation No. 19/2018. One notable change is the requirement that individual taxpayers must report their bank accounts, including inheritance wealth that had not been distributed to heirs.