Law & Taxes June 2017 - page 12

TAXES LAW
12
Kudri & Djamaris, Attorneys – Counsellors at Law
On 8th May 2017, Indonesian Government has issued a new
Government Regulation in Lieu of Law No. 1 of 2017 on Access
to Financial Information for Tax Purpose (“Perppu 1/2017”).
This regulation sets out the main legal framework for the
implementation of Automatic Exchanges of Financial Information
(“AEoI”) in order to ensure compliance with the various tax
provisions set out under the prevailing laws and regulations, as
well as various tax treaties which are applicable to Indonesia.
Perppu 1/2017 requires that access to financial information must
now be opened up. In this context, Director General of Tax (“DGT ”)
has now been authorized to access financial information held
by financial service institutions (“FSI”) such as banking, capital
market, insurance sector or other financial institution. In Perppu
1/2017, FSI are no longer bound by the obligation to keep such
information confidential (secrecy obligation).
FSI nowmust provide the following documents to the DGT such as:
1. Reports containing financial information, in accordance
with standards for the exchange of financial information
(i.e. common reporting standards – “CRS”) for all financial
accounts which are identified as reportable accounts (“CRS
Ministry of Trade of the Republic of Indonesia (“MoT”) has issued
new regulations regarding the re-registration of Trade Business
Licenses or as known as SIUP and the administrative cost for the
renewal of Company Registration Certificate or also known as TDP.
As per Article 7 paragraph (2) of the new MoT Regulation
No. 7/M-DAG/PER/2/2017 on the Third Amendment of MoT
Regulation No. 36/M-DAG/PER/9/2007 on the Issuance of Trade
Business Licenses (“MoT Regulation 7/2017”), the business
actors, which were previously required to make the SIUP re-
registration in every 5 (five) years, are no longer obligated to do
the re-registration. Moreover, in Article 16 MoT of Regulation
7/2017, the companies filing for new SIUP, amendment and/or
replacement of their lost and damaged SIUP are not required to
pay any retribution to the MoT.
Similarly, theMoT also releases the company to pay administrative
fee for the renewal of TDP. Pursuant to Article 9A of the new
MoT Regulation No. 8/M-DAG/PER/2/2017 on the Second
Amendment of Ministry Regulation No. 37/M-DAG/PER/9/2007
on the Organization of Company Registration (“MoT Regulation
8/2017”), the companies which are required to make a renewal of
their TDP is not charged with administrative fee.
Reports”); and
2. Reports containing financial information for tax purpose (“Tax
Reports”).
DGT may also request additional information and/or evidence or
statements from the relevant FSI to be included in the taxation
database under the control of the DGT. Moreover, the Ministry of
Finance (“MoF”) may exchange any of the information, evidence
and/or statements supplied by FSI with competent authorities
located in other countries.
Prior to the issuance of Perppu 1/2017, exchanges of financial
information for tax purpose were primarily aimed at foreign
customer, which were already regulated under the following
regulations:
1. Ministry Regulation No. 39/PMK.03/2017 on Procedures for
the Exchange of Information Based on International Treaties;
and
2. Financial Service Authority (“OJK”) Regulation No. 25/
POJK.03/15 on the Submission of Foreign-Customer Taxation
Information to Participating Countries or Jurisdictions though
OJK Circular Letter No. 16/SEOJK.03/2017.
Arief Octovian, S.H.
Associate
+62 21 5225453
a.octovian@kndlawyers.com
Bunga Febriola Putri, S.H.
Associate
+62 21 522 5453
bf.putri@kndlawyers.com
Banking and Finance
New Regulation on Access to
Financial Information for Tax
Purpose
MoT Regulation 8/2017 also simplifies the process for the
extension of TDP. Before the issuance of MoT Regulation 8/2017,
a company wishing to extend their TDP is required to fill up several
prescribed forms. Now, theyonlyhave tosubmit anotification letter
along with copy of valid TDP to Head of Company Registration
Office. Such notification letter can be submitted either manually
or online using the prescribed format.
Furthermore, MoT Regulation 8/2017 also gives more certainty
to the company on the renewal of their TDP. It is now stipulated
that the Company Registration Office shall issue a new TDP within
3 (three) business days since receiving the renewal notification
letter. If the new TDP has not been issued within such time, the
current TDP would be considered valid and automatically be re-
registered.
New Regulations on Trade Business License
and Company Registration Certificate
Corporate Law
7th Edition | June 2017