Global Daily Tax News, Indonesia Seeks To Add BEPS Provisions To Thirteen Treaties, (Nov 30, 2023)

Indonesia has added a number of its tax treaties to the scope of the BEPS multilateral instrument (BEPS MLI).

The BEPS MLI enables countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without h ...

Indonesia has added a number of its tax treaties to the scope of the BEPS multilateral instrument (BEPS MLI).

The BEPS MLI enables countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties. The instrument implements minimum standards to counter treaty abuse, prevent the artificial avoidance of permanent establishment status, neutralize the effects of hybrid mismatch arrangements, and improve tax dispute resolution mechanisms.

Indonesia has requested to extend the scope of the BEPS MLI to its double tax treaties with Austria, Belarus, Germany, Jordan, Kuwait, Mongolia, Morocco, Papua New Guinea, Singapore, Sri Lanka, Tunisia, Ukraine, and the United Arab Emirates.

The full list of changes agreed by Indonesian authorities is set out in an updated document setting out reservations and notifications, deposited with the OECD on November 27, 2023.