The Ministry of Finance Opens Voices of Rich Indonesians Buying Luxury Homes in Singapore

Armfalcon.com, JAKARTA — Social media was shocked by the wealth of a conglomerate from Indonesia who recently bought three condominiums in Singapore worth IDR 2.3 trillion. The location of the property purchased is even in a premium area.

Purchasing property in Singapore by foreign nationals is nothing new. This is because that country allows foreign nationals to buy property such as houses, apartments, and other property units.

In this regard, the spokesperson for the Ministry of Finance, Yustinus Prastowo, revealed that the purchase of houses for Indonesians can be detected through automatic exchange of information scheme (eol) or automated information exchange portal.

“Usually things like this fall into the scheme automatic exchange of information,” wrote Prastowo on his personal Twitter account @prastow, quoted on Friday (28/4/2023).

There is a scheme automatic exchange of informationPras said that the Directorate General of Taxes of the Ministry of Finance could exchange information or exchange of information. The aim is to ensure that the government obtains detailed information regarding the purchase of luxury homes by Indonesians in Singapore.

“At least the DGT can do an EoI to ensure we get more detailed information,” wrote Pras.

According to him exchange of information is an automatic financial data information exchange system that is used to identify and monitor tax potential at home and abroad. This system is tasked with minimizing the possibility of taxpayers being absent from their tax obligations.

Even so, Pras emphasized that buying property for citizens is a right. However, this must also be followed by an inherent obligation.

“Buying property is a citizen’s right. Hopefully the tax obligations will be fulfilled properly,” Pras wrote.

System exchange of information will track the financial information of Indonesian citizens residing in other countries and can be used to address taxation issues. This system is expected to increase tax compliance so that it will have an impact on increasing state revenue from the tax sector.

As for some benefits exchange of information among others, the first is the right step to improve and update the financial information management system in Indonesia. Second, to reduce the potential for fraud in the revenue sector and/or tax evasion.

Third, entrepreneurs or corporate taxpayers can no longer hide their assets, financial assets and income abroad because they will be tracked in the system. That way no one will avoid their tax obligations.

“Finally, realizing the tax target desired by the government and increasing the performance of international tax collection,” Pras wrote.