Friday, 20th October 2017

Minimum account balance for AEOI reporting set at US$250,000

19th May 2017 | 10.636 Views
Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati confirmed here on Thursday that the minimum account balance to be reported under the Austomatic Exchange of Information (AEOI) has been set at US$250,000.

"Based on the international regulation the minimum account balance that will automatically be reported is US$250,000," she said at a press conference on financial information access for tax purpose.

She said Indonesia has been ready to participate in the financial information exchange in 2018 and in connection with it the country will adjust with the regulation effective internationally including with regard to the floor of the account balance set for it.

"This is international. Above US$250,000 it will be subject to information access. I reiterated that in the framework of AEOI compliance will be the same as in other countries," she said.

Sri Mulyani said presently 100 jurisdictions including G20 member countries have so far committed themselves to AEOI and 50 jurisdictions have been ready to implement AEOI in September 2017 while the rest in September 2018.

The countries include Hong Kong, Singapore, Switzerland, Australia, British Virgin Islands and Bahama that have so far been considered as tax havens.

"This means that internationally bank secrecy has ended with regard to tax purposes and so every bank customer must now understand that financial data in financial institutions may be accessed by tax authorities," she said.

Under AEOI every jurisdiction making commitment are obliged to make laws on access for tax authorities to financial information and reporting standards as well as information exchange transmission system.

"If a country is unable to meet the AEOI implementation requirements it will be declared as fail to comply with rules and as a consequence it will have no power to get information from its partners or has no right to reciprocal information," she said.

In view of that Sri Mulyani said the government has issued Perppu (government regulation in lieu of law) Number 1, 2017 regarding financial information access for tax purposes to support the implementation of AEOI.

The process of producing the Perppu has been consulted with the Financial Service Authority, Bank Indonesia as well as ministerial institutions concerned.

"This Perppu is aimed at making Indonesia able to safeguard its national interest at international level as not only information but also funds and assets that may move across countries and cause erosion on Indonesia tax basis," she said. (*)