VIVAnews - Indonesia is believed as having strong commitment to eliminate transfer pricing practices or double tax evasion. Indonesian Directorate General of Taxes claims they have gained support from 60 countries to eradicate the practices.
Directorate General of Taxes Director of Public Relations and Counseling Services Djoko Slamet Surjoputro said there had been 60 countries willing to share tax information with Indonesian Tax General Directorate.
“The exact number is 58. More or less, 60,” Surjoputro said at the Borobudur Hotel on Wednesday, December 16.
The countries, he said, had agreed to observe how each other’s tax rights work for taxpayers who own multinational companies.
“For example, how we analyze it with partners, if they are subjected to 20 percent of tax, those who have residential information could pay 10 percent here and another 10 percent there (in their home countries). How it works for those without the information, whether or not they are entitled to that privilege,” Surjoputro said.
He also said the Directorate General of Taxes was in high spirit to settle the transfer pricing issue because the agreement is supported by other countries. Earlier, the G20 agreement proposed to get rid of tax havens.
“We’re fully supporting it. So, from now on, there won’t be any taxpayer able to invest in tax haven countries,” he said.
The focus is to make government officials given right to pay taxes. If it is not bilaterally solved, transfer pricing would only benefit other countries. “So, it is to keep our taxation rights fair” Surjoputro said.
According to him, several countries have promised the Tax Directorate to voluntarily pass on the data of Indonesian taxpayers who are currently living outside Indonesia.
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Translated by: Nataya Ermanti
