Updating Foreign Account Tax Compliance Act (FATCA) and Automatic Exchange of Information (AEoI)

When:
Tuesday, 7 March 2017

Activity Time:
09.00 a.m. to 05.00 p.m

Where:
DDTC Academy
Menara Satu Sentra Kelapa Gading 5th Floor,
Unit #0501
Jl. Bulevar Kelapa Gading LA3 No.1 Summarecon
Kelapa Gading Jakarta Utara 14240

Investment:
IDR 3.000.000
(Click here for discount)

Background:
Automatic Exchange of Information (AEOI) to exchange financial account information in tax matters internationally, is much in the news these days. This new global initiative is intended to reduce possible (offshore) tax avoidance and evasion. There are at least two types of frameworks on exchange of information that will impact Indonesian taxpayers and financial institutions.

Firstly, The Foreign Accounts Tax Compliance Act (FATCA) launched by US. FATCA provisions impose a 30% withholding tax on certain U.S. source of payments made to foreign financial institutions (FFIs) and non-financial foreign entities (NFFEs). This provision is intended for such entities that refuse to identify certain U.S. investors, even if such U.S. persons directly or indirectly hold only non-U.S. assets. The provisions are effective for payments made after January 1, 2013 and will be implemented in 2017.

Secondly, Global Forum on Transparency and Exchange of Information for Tax Purposes – OECD setup a new AEOI framework. Participating jurisdictions that implement AEOI exchanged their pre-agreed information each year, without having to send a specific request. To implement this global standard, the participating jurisdictions should refer to a model agreement, a common reporting standard (CRS), a commentary on interpretation and basic data for an information technology solution. This model is also endorsed by G20 and will be implemented by Indonesia in 2018.

Topics Covered:

• Introduction: Recent Updates of AEOI,
• Fundamental Concept and Critical Point of FATCA,
• Updating FATCA regulation,
• Framework and Model of CRS,
• Legal framework in Indonesia to Implement FATCA and CRS,
• Expected Implications for Indonesian Taxpayers and Financial Institutions.