Indonesia Tax Authority & South Korea NTS Sign MoU on Tax

The Directorate General of Taxes (DGT) signed a memorandum of understanding (MoU) with South Korea's National Tax Service (NTS) during the 12th Indonesia‑Korea Commissioners’ Meeting in Jakarta on 9 December 2025. The agreement provides for cross‑border tax collection assistance at DGT's request.

NTS indicated that the partnership allows the Korean authority to seize assets of Indonesian taxpayers located in South Korea to recover legitimate tax liabilities. The assistance is governed by Ministry of Finance Regulation No 61/2023 and follows the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) ratified by Indonesia. The MoU outlines detailed procedures, scope, and standards for the collection actions.

The collaboration aims to improve tax recovery and deter offshore asset concealment, while excluding taxes such as inheritance, excise, and vehicle taxes. Taxpayers may face asset seizure in South Korea if overdue taxes are confirmed. DGT will monitor implementation under the agreed mechanisms.