Tax revenues are currently rising as a proportion of national incomes in Indonesia and Malaysia but continue to be substantially lower than for Korea, Japan and other OECD countries, according to a new OECD report.
International efforts to combat tax evasion and avoidance got a boost today as additional countries and jurisdictions agreed to join more than 60 other countries in tax co-operation through a key multilateral tax instrument during the first day of a global meeting in Jakarta, Indonesia.
Indonesia has come a long way in improving its tax system over the last decade, both in terms of revenues raised and administrative efficiency. Nonetheless, the tax take is still low, given the need for more spending on infrastructure and social protection.
As a result of details provided to the Global Forum on Transparency and Exchange of Information for Tax Purposes, Brazil and Indonesia are now ranked in the category of jurisdictions that have substantially implemented the internationally agreed tax standard.