Government Regulation In Lieu Of Law No. 1 Year 2017 Dated 8 May 2017

ACCESS OF  FINANCIAL INFORMATION FOR TAX PURPOSES

​Access of financial information are access to receive and obtain financial information in order to implement taxation provision and international tax agreement.
DGT has the authority to get such access from financial service institution engage in banking, capital market, insurance, other financial services institution and/or other entity classified as financial institution under international tax agreement.

The abovementioned institutions must submit the following report to DGT:
a.   Report consist of financial information in accordance with financial information exchange standards under international tax agreement for every financial account identified as obliged to be reported
b.   Report consist of financial information for tax purposes
under their administration for one year period.

The mandatory reports must at least contain the following information:
a.   Identity of account holder
b.   Account number
c.    Identity of financial service institution
d.   Balance of account
e.   Income generated from such account

Report for international taxation purposes must cover the following procedures:
a.   Verification of domicile country of account holder
b.   Verification of account holder as obliged to be reported
c.    Verification of financial account as obliged to be reported
d.   Verification of account holder entity to determine the person who control the entity as obliged to be reported
e.   Documenting all procedures for such identification, including filing all documents

All financial institutions which subject to this regulation are not allowed to
a.   Open new account for new customer
b.   Handle new transaction related to financial account of existing customer
who refuse to comply with provision for identifying financial account

DGT may request financial institutions which maintain their documentation in foreign language to translate it to Indonesian Language.
Whenever financial institutions are bound by law to maintain secrecy, such obligation are void under this regulation.

All report will be submitted by:
a.   Electronic to Financial Services Authority (OJK) for international tax agreement purposes
b.   Non electronic, as long as electronic mechanism is not available, to DGT
Minister of Finance may decide other mechanism of reporting after getting input from chief of Commisioner council of OJK.

Electronic reporting mechanism should comply with the following condition:
a.   Financial institutions must report to OJK not later than 60 days before the deadline of financial information exchange between Indonesia and other country or jurisdiction.
b.   OJK must submit the report to DGT not later than 30 days before the deadline of financial information exchange between Indonesia and other country or jurisdiction.
For non electronic reporting to DGT must be submitted no later than 4 months after end of year.
DGT may request other information besides information stated in such report. All information obtained by DGT will be used as tax database.

Under international tax agreement, Minister of Finance may carry out financial information exchange with official in other country or jurisdiction.

Minister of Finance, chief of OJK, chief of financial institutions and all their officials and employees cannot be charged or prosecuted while doing their obligation under this regulation.

Chief and or employees of financial institutions who are not:
a.   Submitted the required report
b.   Carry out the proper procedures for identifying financial account
c.    Submitted any requested information to DGT
will be prosecuted under criminal law with maximum sentenced of 1 year or penalty of Rp 1 billion.

Financial institutions which are not:
a.   Submitted the required report
b.   Carry out the proper procedures for identifying financial account
c.    Submitted any requested information to DGT
will be prosecuted with maximum penalty of Rp 1 billion.

Anybody who make false statement or hide or omit any information which subject to be reported will be prosecuted under criminal law with maximum sentenced of 1 year or penalty of Rp 1 billion.

At the effective date of this regulation:
a.   Article 35 paragraph 2 and article 35A of Law no 6 year 1983 which last amended by Law no. 16 year 2009 concerning general taxation provisions and procedures
b.   Article 40 and 41 Law no. 7 year 1992 which has been amended by Law No. 10 year 1998 concerning Banking
c.    Article 47 Law No. 47 year 1995 concerning Capital Market
d.   Article 17, 27 and 55 Law No. 32 year 1997 which has been amended by Law No. 10 year 2011 concerning comodity futures exchanges
e.   Article 41 and 42 Law No. 21 year 2008 concerning syaria banking
Are no longer valid regarding the implementation of this regulation.

Minister of Finance will issue technical guidance regarding financial information exchange and access under this regulation.

This regulation will be effective at promulgation date.