Thailand
Singapore Softens Stance in Tax Cooperation
TEMPO.CO, Jakarta – Finance Minister Sri Mulyani Indrawati assured that the negotiation of tax cooperation between Indonesia and Singapore is running smoothly.
The Indonesian government is currently registering the wealth of Indonesian citizens in Singapore. “We are applying the principle that is mentioned in the Base Erosion and Profit Shifting (BEPS),” said Sri Mulyani on Thursday, July 13.
BEPS was formed as a preparation to welcome the Automatic Exchange of Information (AEol) in 2018. BEPS was introduced following the complaints of countries who lose its tax potentials from companies or capital owners that are based in a country and also take profit from other countries where their products are marketed.
Authorities recorded that the total value of Indonesian assets in Singapore adds up to Rp2,600 trillion, where most of it is reaped from conducting business in Indonesia.
Following the 2016 Tax Amnesty program, Singapore has been Indonesia’s main source of state funds considering that the amount of repatriated assets originating from Singapore reached Rp85trillion. The number is the highest compared to other countries despite many not participating in the tax amnesty program.
Singapore’s Finance Ministry officially announced that they have listed Indonesia as a partner in the Multilateral Competent Authority Agreement (MCAA).
Source: https://en.tempo.co/read/news/2017/07/14/056891406/Singapore-Softens-Stance-in-Tax-Cooperation