- Indonesian and Australian tax authorities sign a new MoU to strengthen crypto taxation.
- The agreement focuses on enhancing the detection of crypto assets with potential tax liabilities.
- Indonesia and Australia have had mutual agreement on the changing financial landscape for nearly 20 years.
Indonesian and Australian tax authorities have signed a new Memorandum of Understanding (MoU) to strengthen cooperation in crypto taxation. The MoU was specifically signed by the Indonesian Directorate General of Taxes (DGT) and the Australian Taxation Office (ATO) on April 22, per an official press statement.
The agreement was inked at the Australian Embassy in Jakarta. It aims to enhance the detection of crypto assets with potential tax liabilities in either nation. Under this arrangement, tax authorities from both countries will leverage improved data-sharing capabilities to facilitate the exchange of vital information concerning crypto assets.
Mekar Satria Utama, Director for International Taxation at DGT, emphasized that the MoU highlights the importance of tax authorities embracing innovation to adapt to the swift evolution of financial technologies on a global scale. In his words:
“While crypto assets are relatively new, the need to ensure equitable taxation remains essential to promote economic growth and provide revenue for crucial public investments in areas like infrastructure, education, and healthcare.”
On the other hand, Belinda Darling, Assistant Commissioner at ATO, emphasized the enduring partnership between the two tax authorities, which has spanned nearly two decades. She noted that this latest initiative builds upon previous collaborations to modernize taxpayer services.
Specifically, the ATO and DGT have collaborated on initiatives such as enhancing taxpayer services through the introduction of the virtual tax assistant and implementing a value-added tax on digital goods and services. Their collaboration also extends to international tax matters and broader reforms.
According to the report, this recent agreement highlights Indonesia and Australia’s mutual dedication to adapting and innovating amid the changing financial landscape. It aims to establish a fair and sustainable tax framework suited to the digital era.
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