On 26 August 2026, the Indonesian Directorate General of Taxes (DJP) issued a formal announcement reinforcing the mandatory requirement for financial institutions to obtain valid self-certification forms from account holders under the Common Reporting Standard (CRS) framework. This measure implements Indonesia’s obligations under the Multilateral Competent Authority Agreement (MCAA) and domestic regulations including PMK-107/2017 and POJK-48/2017, which mandate automatic exchange of financial account information (AEOI) with partner jurisdictions. The announcement clarifies that self-certification must be collected at account opening and updated upon change in circumstances, using the standardized forms prescribed by the OECD. Financial institutions failing to secure valid self-certifications face reporting obstacles and potential administrative sanctions under tax provisions. The policy applies to all reporting financial institutions operating in Indonesia, including banks, custodial institutions, investment entities, and specified insurance companies.
Key Takeaways
- Mandatory Valid Self-Certification: Financial institutions must obtain and maintain up-to-date, valid self-certification forms from all account holders to establish tax residency status. Expired, incomplete, or inconsistent forms render the certification invalid, triggering mandatory reporting as an undocumented account.
- Standardized OECD Forms Required: Only the official OECD CRS self-certification forms (individual, entity, and controlling person versions) are accepted. Institutions must ensure forms capture all mandatory fields: name, address, jurisdiction(s) of residence, TIN(s), date of birth (for individuals), and entity classification with controlling person details where applicable.
- Ongoing Monitoring and Remediation: Institutions must implement procedures to monitor changes in account holder circumstances, request updated certifications within 90 days of change, and apply remedial actions for pre-existing accounts lacking valid documentation. Non-compliance exposes institutions to penalties under Article 17 of Law No. 16/2009 on General Tax Provisions and administrative sanctions per PMK-107/2017.
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