Pursue Tax, Government of Hong Kong Approach

Pursue Tax, Government of Hong Kong Approach - Directorate General of Taxation is currently exploring the Avoidance of Double Taxation Agreement (P3B) in Hong Kong so as to suppress the level of tax evasion.

"We have not got (P3B with Hong Kong), we feel happy because with the treaty, we can exchange information with Hong Kong," said Director General of Taxes, Muhammad Tjiptarjo, in Jakarta this week.

Tjiptarjo, admitted not mengtahui when P3B-Hong Kong Indonesia terelisasi.Saat pembahsan P3B with the new Hong Kong in the first phase and will continue in March. "Not knowing when completed, is still in the first round stinggal half," he said.

Besides Hong Kong, continued Tjiptarjo, it also had to do exploratory P3B with Macau, China. But unfortunately after didalami, the Macau not ready. There is now approximately 58 P3B Indonesia and other countries that have become effective. This amount will continue to grow because there are some who have not P3B more effective but still in the process of negotiating, signing, ratification or implementation process.

P3B intended primarily to eliminate the double taxation (double tax). This double taxation arises because the two states to tax the same income. The provisions of P3B intended to prevent double taxation.

In addition to elimination of double taxation, P3B also intended to prevent tax evasion (tax avoidance) and tax evasion (Tax Evasion). If these goals achieved, of course, P3B ultimately eliminate traffic barriers in trade, capital and investment between countries that may ultimately be achieved prosperity of a country because resources are allocated efficiently.