Indonesia, Bermuda Sign TIEA

by Mary Swire, Tax-News.com, Hong Kong

28 June 2011

Bermuda’s Premier Paula Cox and the Indonesian Ambassador for the UK and Northern Ireland, Yuri Octavian Thamrin, have signed a bilateral tax information exchange agreement (TIEA) in Indonesia’s London Embassy.

At the signing ceremony of the TIEA, Bermuda’s 25th, Premier Cox noted the significance of the agreement with Indonesia. “The signing of our newest TIEA helps solidify our relationship with an economy that is important to the global financial system,” she said. “Indonesia is a member of the G20 in the Asia Pacific region, the world's third-largest democracy, and home to the world's largest Muslim population."

“Bermuda continues to strengthen its position as a domicile for the Sharia compliant international financial services industry, such as Re-takaful (re-insurance), mutual fund and trust business,” she added. “We consider Indonesia as a key strategic relationship that Bermuda is keen to foster. Resultantly, Bermuda works closely with Indonesia in international cooperation through the internationally agreed tax standard in which TIEAs are an important part.”

Incorporating the internationally-agreed Organization for Economic Cooperation and Development standard for the exchange of information upon request, the agreement will give the tax authorities of both countries a greater ability to exchange taxpayer information and to exchange information on a wider range of taxes.

Its signing follows a recent indication from the Indonesian government that it is looking to negotiate additional TIEAs this year with a number of jurisdictions, in order to obtain further details of offshore funds held by Indonesian taxpayers.

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