DGT, OECD Enhance Cooperation on Taxation

Jakarta, InfoPublik – Finance Ministry’s Directorate General of Tax (DGT) and the Organization for Economic Co-operation and Development (OECD) renewed the Memorandum of Understanding (MoU) in the embassy of the Republic of Indonesia in Paris, France, January 25, 2017.

In the press release received in Jakarta, Friday (1/27), the MoU is signed by the Tax Director General Ken Dwijugiasteadi, and the OECD’s Centre for Tax Policy and Administration Director Pascal Saint-Amans.
The signing was held at the Indonesia’s Embassy in Paris, France, witnessed by Indonesia Ambassador for France Hotmangaradja Pandjaitan and International Taxation Director John Hutagaol.

"Through the renewal of this cooperation, the DGT and the OECD are committed to enhance tax capacity in various sectors including the agreement on double tax avoidance, transfer pricing, multi national and small and medium enterprises (SMEs) audit, information exchange, tax crimes, taxation and mobility of high net worth individuals, immovable property taxation, tax incentives, taxation of SMEs and informal seector, and micro-simultan modelling of tax revenues,” Ken stated in the press release. 

Furthermore, he also said that the cooperation renewal and enhancement be benecial for Indonesia, especially in increasing DGT employees’ capacity in handling international matters such as tax escaping by multinational companies through base erosion profit shifting scheme.

In addition, the cooperation will also provide benefits in terms of information exchange to prevent and tackle tax dodging by placing the wealth overseas.

"The purpose of this MoU is to give less space for taxpayers (WP) to avoid tax," he said. (Translator: Rina Alexandra)