RI Affirms Position Supporting International Tax Justice At The G20 Forum

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – The Indonesian government through the Ministry of Finance (Kemenkeu) stated that it continues to support efforts to implement the Two Pillars International taxation Solution at the G20 Forum which is considered historic in overhauling the global tax architecture.

The Expert Staff of the Minister of Finance for Tax Compliance, Yon Arsal, delivered the statement after the 3rd G20 Indonesian Presidency of the Minister of Finance and Governors of the Finance Minister and Central Bank Governor (FMCBG) meeting this week.

"Reforming a fairer international taxation system is one of the focuses of the further G20 agenda put forward by the G20 Presidency of Indonesia," he said as quoted on Tuesday, August 23.

According to Yon, the reform of the international taxation system is carried out through the allocation of taxation rights to countries that are markets for digital goods and services (market countries), known as Pillar 1.

Then, ensure that all multinational companies (MNEs) pay minimum taxes in all places where the company operates or what is known as Pillar 2.

"The two-pillar solution will guarantee taxation rights and a fairer tax base," he said.

Furthermore, Sri Mulyani's subordinate also revealed that global consensus on this concept will be the key for tax authorities in taxing digital-based cross-border transactions and dealing with tax avoidance issues.

"So we will try to make progress so that it can be realized in Indonesia's G20 Presidency and we will also push it to India's G20 Presidency in 2023," he concluded.