The Director General of Taxation (Dirjen) of the Ministry of Finance (Kemenkeu) has expressed his views on the new rules prohibiting the opening of new accounts for individuals or entities unwilling to provide information to identify their financial status. These rules are outlined in the 2024 Minister of Finance Regulation (PMK) Number 47, which constitutes the third amendment to 2017 PMK Number 70, concerning technical instructions for obtaining financial information for tax purposes. The regulation aims to maintain the validity of financial account data of individuals or entities managed by the Directorate General of Taxation, as well as to facilitate data exchange with financial service institutions. Thus, PMK 47 includes provisions requiring banks or financial institutions to conduct due diligence. Through this regulation, financial service institutions must perform checks to prevent tax avoidance before opening new accounts or providing services for existing accounts. Therefore, if there is an opportunity to obstruct data and information exchange, the government has the authority to assess what data should be exchanged.
With the introduction of these new regulations, he hopes that the quality of data exchanged or received by Indonesia abroad will improve, as this is indeed a mutual agreement at the international level. The Minister of Finance recently issued 2024 PMK Number 47, the third amendment to 2017 PMK Number 70, concerning technical instructions for obtaining financial information for tax purposes. The issuance of the new regulation takes into account that 2017 PMK Number 70 had not yet incorporated anti-tax avoidance provisions in line with the Common Reporting Standard, necessitating amendments. One of the changes stipulated in Article 10A of 2024 PMK 47 is that financial institutions must not open new financial accounts for individuals or entities that fail to meet the identification and reporting requirements for financial accounts, nor may they provide new transactions related to financial accounts for existing account owners who refuse to comply.
The Director General of Taxation (Dirjen) of the Ministry of Finance (Kemenkeu) has expressed his views on the new rules prohibiting the opening of new accounts for individuals or entities unwilling to provide information to identify their financial status. These rules are outlined in the 2024 Minister of Finance Regulation (PMK) Number 47, which constitutes the third amendment to 2017 PMK Number 70, concerning technical instructions for obtaining financial information for tax purposes. The regulation aims to maintain the validity of financial account data of individuals or entities managed by the Directorate General of Taxation, as well as to facilitate data exchange with financial service institutions. Thus, PMK 47 includes provisions requiring banks or financial institutions to conduct due diligence. Through this regulation, financial service institutions must perform checks to prevent tax avoidance before opening new accounts or providing services for existing accounts. Therefore, if there is an opportunity to obstruct data and information exchange, the government has the authority to assess what data should be exchanged.
With the introduction of these new regulations, he hopes that the quality of data exchanged or received by Indonesia abroad will improve, as this is indeed a mutual agreement at the international level. The Minister of Finance recently issued 2024 PMK Number 47, the third amendment to 2017 PMK Number 70, concerning technical instructions for obtaining financial information for tax purposes. The issuance of the new regulation takes into account that 2017 PMK Number 70 had not yet incorporated anti-tax avoidance provisions in line with the Common Reporting Standard, necessitating amendments. One of the changes stipulated in Article 10A of 2024 PMK 47 is that financial institutions must not open new financial accounts for individuals or entities that fail to meet the identification and reporting requirements for financial accounts, nor may they provide new transactions related to financial accounts for existing account owners who refuse to comply.