Indonesia, Switzerland Agree to Tax Information Exchange
Indonesia and Switzerland have signed a joint declaration on Automatic Exchange of Financial Account Information (AEOI) yesterday. The signing was held at the Directorate General of Tax in Central Jakarta.
At the signing ceremony, Indonesia was represented by Director General of Tax for the Finance Ministry Ken Dwijugeasteadi and Switzerland was represented by its Ambassador to Indonesia Yvonne Bauman. The signing was witnessed by Finance Minister Sri Mulyani Indrawati.
Through the joint declaration, Indonesia and Switzerland have agreed to automatic exchange of financial accounts information in 2018 in accordance with the Common Reporting Standard. Both are also committed to strengthening cooperation on financial sector.
The joint declaration is a requirement for Indonesia to exchange information with Switzerland despite the former has entered into the Multilateral Competent Authority Agreement. Indonesia still needs the Switzerland parliament’s approval that will be taken at the end of the year.
According to Sri Mulyani, Indonesia has to exchange information with Switzerland because the latter is one of the world’s top financial centers. “I think no one wants to avoid joining the AEOI because it will be seen as a tax haven,” she said.
Going forward, Sri Mulyani said that the government will have to improve its business process and taxation system for a more credible and safe exchange of information. “We will also prepare ourselves for a full implementation of the global commitment,” she said.
