PERKEMBANGAN KEBIJAKAN PERPAJAKAN INTERNASIONAL

1. RECENT UPDATES ON INTERNATIONAL TAX LANDSCAPE IN INDONESIA Prof. P.M. John L. Hutagaol Director of International Taxation, DGT PERKEMBANGAN KEBIJAKAN PERPAJAKAN INTERNASIONAL Disampaikan di: LOKAKARYA PERPAJAKAN UNTUK DOSEN PKN STAN RABU, 16 JANUARI 2019 IKPI Jakarta 18Januari 2019

2. CURRICULUM VITAE 2

3. AGENDA • Introduction: How does global tax landscape transform? • BEPS Action Plan • Transfer pricing • Multilateral instruments • Digital economy • Exchange of information

4. HOW DOES GLOBAL TAX LANDSCAPE TRANSFORM? Globalization information asymmetry ICT Underground economy Global tax landscape Global economic growth

5. Interdependency Double Taxation & Non-Taxation GLOBALIZATION Aggressive Tax Planning Cross-borderless Harmful Tax Competitions Hybrid Mismatch Arrangement International transactions Universal norms and values Global business players International Cooperation and Collaboration to maintain harmony Taxation issues

6. Disruption & mindset New business models & arrangements Division of taxing rights Low tax compliance ICT Tax administrative complexity Start-up, over the top, Airbnb, financial technology, cryptocurrency, and bitcoin Peer-to-peer economy Digital Economy Huge investment Life cycle of technology & obsolescence Big Data Management Analytic Predictive Taxation issues Presciptive

7. Non recorded economic activities Low tax compliance Asymmetric Information Range from 1%-20% Illicit funds; illegal loggings, fishing, and mining; human trafficking Money laundering UNDERGROUND ECONOMY Crypto currency and bitcoin Cash economy Taxation issues

8. 4 world economic pillars: USA, PRC, EU, Japan Government Expenditure Fiscal Stimulus Government Private Partnership Sliding economic growth Modernized tax administration More taxation revenue to finance the economic recovery programs GLOBAL ECONOMIC GROWTH FATCA, OVDP, Tax Amnesty

9. COMMON APPROACHES DEALING WITH BEPS Base Erosion and Profit Shifting (Penggerusan Basis Pemajakan dan Penggesaran Laba) : Minimum Standard

10. BEPS ACTION PLAN Action Plan 1 Actively involve in the international forums on digital economy Action Plan 2 Include hybrid mismatch rules in the new income tax law Action Plan 3 Introduce new CFC rules (in progress) Action Plan 4 Improve Debt to Equity Ratio (DER) regulation Action Plan 5 Conduct EoI on Tax Rulings including unilateral APA Action Plan 6 Adopt Principal Purpose Test for MLI and tax treaty negotiation Action Plan 7 Adopt prevent artificial avoidance of PE status Action Plan 8-10 Introduce transfer pricing rules (in progress) Action Plan 13 Adopt country by country reporting (CbCR) Action Plan 14 Introduce MAP and APA rules (in progress) Action Plan 15 Sign Multilateral Instruments. Ratify 9 MLIs (in progress)

11. TRANSFER PRICING (TP) • Adopted country by country reporting (CbCR) standards since December 2016 • Exchanged CbCR since June 2018 • Improve TP rules

12. MULTILATERAL INSTRUMENTS (MLI) • Signed MLI convention • Ratified MLI with 9 jurisdictions

13. DIGITAL ECONOMY • Joined Task Force on the Digital Economy (TFDE) • Supported the concept of significant economic presence • Included General Anti Avoidance Rules (GAAR) in the coming Indonesia Tax Law

14. EXCHANGE OF INFORMATION • Joined the Global Forum on Transparency and Exchange of Information (the Global Forum) • Implemented the automatic exchange of information (AEOI) Standards • Received the status of “Largely Compliant”

15. EXCHANGE OF INFORMATION Transparency Taxpayer Compliance EOIR E O I AEOI SPONTANEUS Compliance Risk Management Administration Cost International Tax Agreements & Domestic Regulations

16. DASAR HUKUM EOI 68 Negara, 2 P3B yang tidakmemuatketentuan EOI: Arab Saudi dan Swiss 4 Negara: Jersey, Guernsey, Isle of Man, Bermuda TandaTangan: Cannes, 3 Nov 2011 Ratifikasi: PERPRES 159 / 2014 126Negara – per 29 November 2018 • MCAA AEOI on Financial Information • (90 Yurisdiksi– perNov 18) • BCAA AEOI with Hong Kong • BCAA CBCR with US • 4) MCAA AEOI on CbCR • (74 Negara – per 18 Okt 18)

17. AUTOMATIC EXCHANGE OF INFORMATION (AEOI)

18. JENIS-JENIS AEOI 1 3 2 Laporan Negara per Negara (Country-by Country Report/ CbCR) Informasi Keuangan Nasabah (Financial Information) Pemotongan dan Pemungutan Pajak (Witholding Tax)

19. KOMITMEN INDONESIA ATAS AEOI ON FINANCIAL INFORMATION “…We endorse the proposals made by the OECD working with G20 members on the objective criteria to identify non-cooperative jurisdictions with respect to tax transparency… with a view for the OECD to prepare a list by the July 2017 G20 Leaders’ Summit of those jurisdictions …” G20 Leaders’ Hangzhou Summit2016 “…We commend the recent progress made by jurisdictions to meet a satisfactory level of implementation of the agreed international standards on tax transparency and look forward to an updated list by the OECD by our next Summit reflecting further progress made towards implementation. Defensive measures will be considered against listed jurisdictions...” G20 Leaders’ Hamburg Summit 2017

20. 149 INDONESIAIKUT KOMITMEN BERSAMA NEGARA-NEGARA LAIN UNTUK MENERAPKAN PERTUKARAN INFORMASI SECARA OTOMATIS Status per Juni 2018 http://www.oecd.org/tax/transparency/statement-of-outcomes-yaounde.pdf

21. SIFAT PEMBERIAN INFORMASI KEUANGAN OTOMATIS PELAPORAN informasi keuangan yang dikelola selama satu tahun kalender secara otomatis (TANPA DIMINTA) Pasal 2 ayat (2) huruf a PMK PERMINTAAN DJP Pemberian informasi keuangan berdasarkan PERMINTAAN DJP Pasal 2 ayat (2) huruf b PMK

22. LEMBAGA KEUANGAN PELAPOR sektor Perbankan sektor Pasar Modal sektor Perasuransian • Bank Umum • BPR • Bank Umum syariah • BPR syariah • Perantara Pedagang Efek • Manajer Investasi • Bank Kustodian • Perusahaan asuransi umum • dan umum syariah • Perusahaan asuransi jiwa dan • dan jiwa syariah • Perusahaan reasuransi dan • reasuransi syariah • Perusahaan asuransi lainnya LJK lainnya Entitas lain LJK, LJK lainnya, dan Entitas lain selain yang sudah disebutkan • Lembaga Keuangan Mikro • Penyelenggara layanan pinjam • meminjam uang berbasis TI • Pialang Perdangangan Berjangka • Koperasi Simpan Pinjam

23. OTOMATIS: PERJANJIAN INTERNASIONAL MELAKUKAN PROSEDUR IDENTIFIKASI UNTUK MENENTUKAN REKENING KEUANGAN YANG WAJIB DILAPORKAN LK Yang dimiliki oleh OP/Entitas Yang dimiliki oleh OP/Entitas LEMBAGA KEUANGAN PELAPOR Mengidentifikasi YURISDIKSI TUJUAN PELAPORAN YURISDIKSI ASING Melaporkan Rekening Keuangan Rekening Keuangan YURISDIKSI ASING adalah negara atau yurisdiksi selain Indonesia. YURISDIKSI TUJUAN PELAPORAN adalah Yurisdiksi Partisipan yang merupakan tujuan bagi Pemerintah Indonesia dalam melaksanakan kewajiban penyampaian informasi secara otomatis.

24. STATISTIK PENDAFTARAN *Per 23 Oktober 2018 6.030LK terdaftar

25. STATISTIK AEOI (CRS) Per 10 Desember 2018 Indonesia telah: 65 54 menerima mengirim Laporan yang berisi informasi keuangan nasabah dari/ke yurisdiksi mitra

26. MANFAAT PENERAPAN AEOI • DJP akanmendapatkan data keuangansecaraperiodiktanpamengirimkan EOI request; • AEOI akanmembantu DJP untukmendeteksipraktik-praktik illegal sepertimoney laundering. Mencegah dan mendeteksi terjadinya praktik penghindaran dan pengelakan pajak yang menggunakanOffshore Financial Center (OFC) 01 • AEOI akanmemfasilitasideteksi WP yang tidakpatuhbahkansaat DJP tidakmemilikikecurigaansebelumnya; • AEOI dapatmeningkatkankepatuhansukareladenganmendorong WP untukmelaporkansemuapenghasilannya. Mencegah ketidakpatuhan Wajib Pajak di masa depan 02 • AEOI dapatmembantupemerintahuntukmendapatkankembalipajakdari WP yang tidakpatuh; • AEOI akan semakin memperkuat upaya internasional untuk meningkatkan transparansi, kerjasama, dan akuntabilitas di antara lembaga keuangan dan DJP. Mendukung sinergi sistem perpajakan nasional 03 Meningkatkan reputasi Indonesia 04 Menjadi bagian transparansi informasi keuangan di dunia internasional.

27. OTHERS • Treaty Benefits Entitlement Procedure

28. THANK YOU Ministry of Finance of the Republic of Indonesia Directorate General of Taxes