On 1 October 2026, the Indonesian government officially activated the Standard for Automatic Exchange of Financial Account Information for Tax Purposes (SPP-TDLN), aligning with the OECD Common Reporting Standard (CRS) and the Multilateral Competent Authority Agreement (MCAA) ratified through Presidential Regulation Number 21 of 2018. The SPP-TDLN mandates Indonesian Financial Institutions (IFIs) — including banks, custodians, investment entities, and insurance companies — to identify reportable accounts held by tax residents of partner jurisdictions, collect required data (account holder identity, account balance, income), and report annually to the DJP for onward transmission to treaty partners. The first reporting period covers calendar year 2025, with submission due by 31 July 2026.
Key Takeaways
- Expanded Due Diligence: IFIs must apply enhanced due diligence procedures for pre-existing high-value accounts (exceeding USD 1 million) and new accounts, including self-certification forms and documentary evidence of tax residence.
- Reciprocal Exchange Network: Indonesia has activated exchange relationships with 78 jurisdictions as of October 2026, including major financial centers (Singapore, Switzerland, UK, UAE), enabling bilateral data flows on resident taxpayers’ offshore holdings.
- Penalty Framework: Non-compliant IFIs face administrative sanctions up to IDR 5 billion per violation, while individual account holders providing false self-certifications are subject to criminal penalties under the Tax Crimes Law (UU KUP).
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement