DJP to Sign MoU on Tax Collection Assistance with Japan and Korea

Jakarta, 29 November 2025 – Indonesia’s Directorate General of Taxes (DJP) is working to finalize a memorandum of understanding (MoU) on assistance in tax collection (AIC) with the tax authorities of Japan and South Korea. The MoU will set procedures for exchanging collection assistance under international agreements.

The cooperation is anchored in the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which permits member jurisdictions to assist each other in tax collection. DJP notes that Malaysia maintains a reservation on the AIC clause of MAAC because it follows a territorial tax principle, unlike Indonesia’s worldwide principle.

Indonesia already has legal instruments, such as Presidential Regulations No 159/2014 and No 56/2024, to provide and receive reciprocal collection assistance, excluding certain taxes. Finalizing the MoU with Japan and South Korea should broaden cooperative networks, while Malaysia’s stance may affect future negotiations.