RI Cooperating internationally to avoid transfer pricing losses
Jakarta (ANTARA News) - Indonesia has concluded cooperation agreements with 58 other countries to avoid losses from transfer pricing, a Finance Ministry official said.
"We have cooperation agreements with 58 countries to prevent losses from transfer pricing," Djoko Slamet Surjoputro, director of counseling services and public relations at the finance ministry`s directorate general of taxation, said on Wednesday.
Speaking to reporters after a seminar on the implications of the implementation of Indonesia`s law on value added tax, Djoko said Indonesia could not act alone in the taxation of multinational companies.
"We have to safeguard our taxation rights, We must not lose those rights unless we want to subsidize richer countries," he said.
He said a number of countries had asked for bilateral meetings to discuss the matter and they even promised to provide data on the wealth of Indonesians living there (so the Indonesian government can taz them properly).
Djoko said Indonesia`s tax authorities also welcomed the G-20`s decision to strive for an end to the existence of "tax havens" in a number of countries.
Djoko said further that the cooperation with the 58 countries was a step intended to increase Indonesia`s tax revenue in the future.
"The state can suffer potential financial losses from transfer pricing but with the bilateral agreements, taxpayers are expected to correct their mistakes and meet their tax obligations properly. If not, we will investigate them," he said.
Transfer pricing is a practice where parties in special relationships arbitrarily determine the prices of goods, servixes on intangibles transferred transnationally. The state can lose financially if the prices of those goods, services or intangibles are set lower than they should be. (*)
"We have cooperation agreements with 58 countries to prevent losses from transfer pricing," Djoko Slamet Surjoputro, director of counseling services and public relations at the finance ministry`s directorate general of taxation, said on Wednesday.
Speaking to reporters after a seminar on the implications of the implementation of Indonesia`s law on value added tax, Djoko said Indonesia could not act alone in the taxation of multinational companies.
"We have to safeguard our taxation rights, We must not lose those rights unless we want to subsidize richer countries," he said.
He said a number of countries had asked for bilateral meetings to discuss the matter and they even promised to provide data on the wealth of Indonesians living there (so the Indonesian government can taz them properly).
Djoko said Indonesia`s tax authorities also welcomed the G-20`s decision to strive for an end to the existence of "tax havens" in a number of countries.
Djoko said further that the cooperation with the 58 countries was a step intended to increase Indonesia`s tax revenue in the future.
"The state can suffer potential financial losses from transfer pricing but with the bilateral agreements, taxpayers are expected to correct their mistakes and meet their tax obligations properly. If not, we will investigate them," he said.
Transfer pricing is a practice where parties in special relationships arbitrarily determine the prices of goods, servixes on intangibles transferred transnationally. The state can lose financially if the prices of those goods, services or intangibles are set lower than they should be. (*)