International Taxation in Asia: Issues and the Way Forward
Joint IMF-Indonesia High-Level Conference
July 12-13, 2017
Jakarta, Indonesia
The International Monetary Fund in partnership with the Ministry of Finance, Indonesia will hold a high-level conference to engage policymakers on issues related to international tax reforms. Strengthening tax systems has emerged as a key development priority for the implementation of the 2030 Sustainable Development Goals (SDG). It is recognized that strong tax systems are key for enhancing state building and international tax reforms are integral to domestic tax system development.
With the changing international tax landscape, the reassessment of tax policy among ASEAN (+3) member countries has received increasing attention. The issue of corporate tax avoidance has gained prominence, and new initiatives have been started to tackle international tax issues, including the automatic exchange of information and the G20-OECD Base Erosion and Profit Shifting (BEPS) project. At the same time, sluggish global growth and the pursuit of foreign direct investment to boost national economies and employment have amplified tax competition. The lack of harmonization and coordination on tax incentives among ASEAN member governments has only intensified the race to the bottom, at the expense of revenue in the region.
Against this backdrop, the conference will provide a forum to engage policymakers on issues related to domestic resource mobilization, including through international tax reforms. Participants are expected to include high-level policy makers from the region, senior staff from international and regional organizations, senior staff from Ministries of Finance and Tax Administrations, and members of academia and civil society. The aim is for the discussions at this conference to inform other upcoming high-level engagements, including the 2018 Annual Meetings of the IMF and World Bank which will be held in Indonesia in October 2018.
The Conference is open to the media.
DAY 1—WEDNESDAY, JULY 12, 2017 |
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| 1:00-1:30 PM |
Registration/Coffee |
OPENING CEREMONY |
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| 1:30-1:55 PM |
Welcome Address—Mitsuhiro Furusawa, Deputy Managing Director, IMF |
| 1:55-2:25 PM |
Keynote Speaker—Sri Mulyani Indrawati, Minister of Finance, Indonesia |
| 2:30-2:40 PM |
Mr. Furusawa and Minister Sri Mulyani Indrawati Photo Session and Exchange Souvenirs |
SESSION I: GLOBAL ECONOMIC LANDSCAPE, IMPLEMENTATION OF THE 2030 SUSTAINABLE DEVELOPMENT GOALS (SDG) AND KEY ISSUES IN INTERNATIONAL TAXATION FOR ASEAN (+3) |
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| 2:40-4:10 PM |
A brief presentation of the global economic landscape and revenue challenges among ASEAN (+3) countries will set the scene of the conference. Progress and challenges in strengthening revenue mobilization in ASEAN will be discussed, focusing on the progress in achieving the SDGs and securing macroeconomic stability and resilience in the region. The session will take a broader and longer-term perspective on revenue mobilization. Efforts targeted at creating an environment conducive to sustainable revenue mobilization in ASEAN will be discussed. Moderator: Lin Xueling, Executive Producer/Presenter, Channel NewsAsia Speaker: Vitor Gaspar, Director, Fiscal Affairs Department, IMF Panel:
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| 4:10-4:20 PM |
Group Photo Session |
| 4:20-4:30 PM |
Coffee Break |
SESSION II: POLICY DISCUSSION: TOWARDS A FAIR, REGIONALLY-INTEGRATED, AND EFFICIENT TAX SYSTEM IN ASEAN (+3) |
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| 4:30-5:45 PM |
A discussion of the key issues in international taxation, tailoring the implementation of international tax-related initiatives to the circumstances of ASEAN (+3). An overview of initiatives taken to-date, as well as challenges in effectively implementing these initiatives, will be given. The discussion will further identify and examine remaining challenges in strengthening the international tax system, including tax competition and cooperation. The session will aim to offer a forward-looking perspective on the potential needs for more fundamental changes in the international tax architecture and, most importantly, tax coordination in ASEAN (+3). Moderator: Kenneth H. Kang, Deputy Director, Asia and Pacific Department, IMF Speaker: Michael Keen, Deputy Director, Fiscal Affairs Department, IMF Panel:
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DAY 2—THURSDAY, JULY 13, 2017 |
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SESSION III: INTERNATIONAL TAX ISSUES FOR ASEAN |
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| 10:00 AM-12:00 PM |
This session will address key international tax issues, and the most important challenges the ASEAN (+3) countries face in relation to base erosion and profit shifting. A discussion of tax avoidance mechanisms, including through transfer (mis)pricing, structuring of transactions to avoid capital gains taxation, and treaty shopping, will follow. Outcomes and implementation challenges of G20/OECD BEPS project, with focus on ASEAN (+3), will be discussed. Moderator: TBD Speaker: Michael Keen, Deputy Director, Fiscal Affairs Department, IMF Panel:
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| 12:00-1:30 PM |
Lunch Keynote Speaker: TBD |
SESSION IV: AUTOMATIC EXCHANGE OF INFORMATION |
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| 1:30-3:00 PM |
The session will consider how the exchange of information could help address some of the challenges in international taxation; discuss practical implementation issues, and assess implications for ASEAN (+3). Moderator: Yustinus Prastowo, Director, Center for Indonesia Taxation Analysis (CITA), Indonesia Speaker: Monica Bhatia, Head of Global Forum on Transparency and Exchange of Information, OECD Panel:
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| 3:00-3:30 PM |
Coffee Break |
SESSION V: TAX INCENTIVES |
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| 3:30-5:00 PM |
Drawing on a G-20 report Effective and Efficient Use of Tax Incentives for Investment and on the analytical chapter of the April 2016 Fiscal Monitor, this session will review the ASEAN (+3) experience on the design and impact of tax incentives, including the pros and cons of special economic zones in promoting economic development. The discussion will address the importance of tax incentives, relative to the quality of domestic institutions, in attracting foreign investment, as well the revenue impact of tax incentives. Further, the issues of intra-regional tax competition in ASEAN will be discussed. Moderator: Daniel Citrin, Director, Office of Budget & Planning, IMF Speaker: Narine Nersesyan, Senior Economist, Fiscal Affairs Department, IMF Panel:
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| 5:00-5:30 PM |
Closing Remarks—Suahasil Nazara, Chairman, Fiscal Policy Agency, Ministry Of Finance, Indonesia |