Introduction
The development of the digital economy and increased cross-jurisdictional mobility have prompted tax authorities in various countries to strengthen regulatory frameworks that ensure certainty in taxpayer status while enhancing global financial transparency. In Indonesia, these efforts are reflected in the issuance of Minister of Finance Regulation No. 108 of 2025 on the Technical Guidelines for Access to Financial Information for Tax Purposes, as well as Regulation of Directorate General of Tax No. PER- 23/PJ/2025 on the Determination of Domestic Tax Subjects and Foreign Tax Subjects.
The following section outlines the key provisions governed by these regulations and examines the interrelationship between them.
EOI: Ministry of Finance Regulation No. 108 of 2025
On 31 December 2025, the Ministry of Finance of Republic Indonesia (“MoF”) has enacted MoF Regulation No. 108 on the Technical Guidelines for Access to Financial Information for Tax Purposes (“MoF Regulation 108/2025”). The MoF Regulation 108/2025 was enacted as one of the implementing measures for several international agreement as follows: (i) Addendum to the Multilateral Competent Authority Agreement to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information; and (ii) Multilateral Competent Authority Agreement on Automatic Exchange of Information pursuant to the Crypto-Asset Reporting Framework.
MoF Regulation No. 108 of 2025 primarily sets out provisions governing the implementation of the automatic exchange of financial account information. In this regard, the Director General of Taxation (“DGT”) as the relevant authority, is authorized to receive financial information reports from certain taxpayers and to utilize such reports for information exchange for tax purposes.
Furthermore, the parties required to submit reports containing financial information are as follows:
- Financial institutions, which include: (i) financial services institutions; (ii) other financial services institutions; and/or (iii) other entities classified as financial institutions under the Common Reporting Standard (CRS); and
- CARF Reporting Crypto-Asset Service Providers, which include: (i) other CARF entities, whether in the form of legal entities or legal arrangements, that meet the criteria to be classified as financial institutions under the Crypto-Asset Reporting Framework (CARF); and/or (ii) individuals, where both categories provide services facilitating exchanges between crypto-assets and fiat currencies, as well as exchanges between one or more types of crypto-assets (“CARF Reporting CASPs”).
Under MoF Regulation 108/2025, the obligation to report financial account information automatically, as well as reports containing crypto-asset information, is conducted between the DGT and the competent authorities of: (i) participating jurisdictions and/or reportable jurisdictions under AEOI-CRS for the exchange of financial account information relating to financial institutions; and
(ii) participating jurisdictions and/or reportable jurisdictions under AEOI-CARF for the exchange of crypto-asset information relating to CARF Reporting CASPs.
Moreover, MoF Regulation 108/2025 regulates that the DGT shall publicly announce the list of jurisdictions comprising: (i) AEOI-CRS participating jurisdictions; (ii) AEOI-CRS reportable jurisdictions; (iii) AEOI-CARF participating jurisdictions; and (iv) AEOI-CARF reportable jurisdictions.
In relation to the above, as of 20 January 2026, DGT has issued the Announcement No. Peng-1/PJ/2026 on the List of Participating Jurisdictions and Destination Jurisdictions for the Purpose of the Automatic Exchange of Financial Account Information (Automatic Exchange of Financial Account Information/“AEOI-CRS”) for 2026 (the “Announcement”), as an update to Announcement No. Peng-1/PJ/2025 of 2025. The Announcement provides information on two matters, namely:
- AEOI-CRS Participating Jurisdictions: AEOI-CRS Participating Jurisdictions refers to foreign jurisdictions that are bound with the Indonesian Government under international agreements to conduct AEOI-CRS. In terms of numbers, the Appendix to the Announcement states that there is now a total of 117 AEOI-CRS Participating Jurisdictions, providing an increase of 2 participants from the previous year; and
- AEOI-CRS Destination Jurisdiction: AEOI-CRS Destination Jurisdictions refer to AEOI-CRS Participating Jurisdictions that serve as the destinations for the Indonesian Government in fulfilling its obligation to automatically exchange financial account information. In terms of numbers, the Appendix to the Announcement states that there are total of 92 AEOI-CRS Destination Jurisdictions, providing an increase of 3 other jurisdictions from the previous year.
Based on the foregoing, this trend shows an increase of AEOI-CRS Participating Jurisdictions and AEOI-CRS Destination Jurisdictions allows for a more reciprocal relationship and aids the Indonesian Government (and subsequently, other international governments) in achieving more transparency and better efficiency in combatting tax evasion.
Tax Residents: DGT Regulation No. PER-23/PJ/2025
In December 2025, the Government of the Republic of Indonesia, through the DGT has issued a new regulation, namely DGT Regulation No. PER- 23/PJ/2025 on the Determination of Domestic Tax Subjects and Foreign Tax Subjects (“DGT Regulation 23/2025”). DGT Regulation 23/2025 formally revokes and replaces the earlier DGT regulations governing similar matters namely PER-02/PJ/2009 and PER-43/PJ/2011, thereby consolidating the rules on tax subject determination into a single updated regulation.
One of the most notable features of DGT Regulation 23/2025 is its shift away from a predominantly formalistic approach toward a fact-based assessment. Under prior regulations, tax residency was often inferred mainly from the number of days spent in Indonesia or from legal registration status. While these indicators remain relevant, the new regulation makes clear that they are not decisive and must be considered together with the taxpayer’s actual circumstances.
For individuals, DGT Regulation 23/2025 maintains the relevance of physical presence exceeding 183 days within a twelve-month period, but it supplements this with an examination of actual residence and habitual abode. The regulation recognizes that residency is not merely a matter of counting days but requires an assessment of where an individual’s personal, familial, social, and economic life is effectively centred.
Similarly, for entities, the regulation expands beyond a narrow focus on place of incorporation. While incorporation under Indonesian law continues to establish domestic tax subject status, DGT Regulation 23/2025 introduces a substantive inquiry into where effective management, strategic decision-making, and operational control are exercised.
Correlation Between the Two Regulations
The enactment of DGT Regulation 23/2025 provides greater clarity on the implementation of MoF Regulation 108/2025. The provisions under DGT Regulation 23/2025, which establish criteria for classifying taxpayers as either foreign tax subjects or domestic tax subjects, have implications for determining AEOI reporting obligations. The determination of taxpayer status as regulated under DGT Regulation 23/2025 affects the registration obligations of financial institutions or CARF Reporting CASPs in obtaining classification as either a CRS Reporting Financial Institution or a CARF Reporting CASPs.
In addition, DGT Regulation 23/2025 contains provisions that influence the implementation of AEOI reporting obligations. For example, a CARF Reporting CASPs is not required to fulfil AEOI-CARF reporting obligations if it is a tax resident in another jurisdiction, such determination of such tax residency may be made by reference to DGT Regulation 23/2025. Accordingly, it may be concluded that DGT Regulation 23/2025 functions to prevent the duplication of reporting obligations as contemplated under MoF Regulation 108/2025.
Conclusion
The enactment of MoF Regulation 108/2025 may strengthen Indonesia’s implementation of the automatic exchange of financial account information (AEOI), in line with its international commitments under the OECD’s Common Reporting Standard (CRS). The regulation authorizes the tax authority to publish official lists of participating jurisdictions and reportable jurisdictions, as well as other technical matters related to financial account reporting. Furthermore, the introduction of DGT Regulation 23/2025 facilitates the implementation of MoF Regulation 108/2025, as the classification of taxpayers helps prevent the duplication of reporting obligations required under MoF Regulation 108/2025 as well as determining other obligations related to MoF Regulation 108/2025.
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