Indonesia, Singapore to implement AEOI in 2018

Jakarta (ANTARA News) – The governments of Indonesia and Singapore will begin to implement the Automatic Exchange of Information (AEOI) agreement in Sept 2018, the Finance Ministrys International Tax Deputy John Hutagaol said.

“We will start to exchange information (on financial information) in Sept next year,” he stated after attending an event of Indonesian Investment Outlook 2018 in Jakarta, Friday (Feb 23).

The Indonesian government now, according to Hutagaol, is still preparing regulations, infrastructures, as well as human resources for the implementation of the agreement.

On the other hand, Singapore will automatically share the financial information on Indonesian nationals to the government once the AEOI is implemented.

Not only with Indonesia, Singapore also will exchange information with other signatory countries of Multilateral Competent Authority Agreement (MCAA) on AEOI with the Netherlands whcih had signed an agreement in June last year.

The agreement is part of an effort to establish a standard and an efficient scheme to facilitate the implementation of the Automatic Exchange of Information.

As a result, Indonesia should no longer have to ink a bilateral agreement to implement AEOI, as it has been covered by the multilateral pact.

The information exchange will be started when the two parties have introduced their own terms and regulations on the implementation of the Common Reporting Standard (CRS), as well as the data privacy and protection.

“By signing the multilateral agreement (MCAA), automatically Singapore is ready to exchange information with Indonesia,” he noted.

The deputy further explained that the Indonesian government will also exchange financial information with 101 countries, including the tax haven states.

“Apart of Singapore, we will exchange information with Japan, Hong Kong, Belgium, and many others,” Hutagaol emphasized.

As a new global standard, the automatic exchange of information will trim the possibility of money laundering, as well as tax evasion.

Source: ANTARA News