HAMILTON, Bermuda — Bermuda has signed a tax information exchange agreement (TIEA) with Indonesia. The signing took place at a ceremony in London on Wednesday, June 22, and was attended by Bermuda’s Premier Paula Cox and Yuri Octavian Thamrin, ambassador of Indonesia, who signed the agreement for Indonesia.
This tax information exchange agreement marks the 25th sych agreement to be signed by Bermuda. It provides for a full exchange of information on criminal and civil tax matters between the two countries, consistent with the internationally agreed standard for transparency and exchange of information for tax purposes set by the Organization for Economic Cooperation and Development (OECD).
Cox said that negotiations leading up to this agreement took place in Bermuda one year ago at Bermuda’s Ministry of Finance and said the signing of this, Bermuda’s newest TIEA, helps solidify Bermuda’s relationship with an economy that is important to the global financial system. Indonesia is a member of the G20 in the Asia Pacific region, the world’s third-largest archipelagic state and home to the world’s largest Muslim population.
The premier added, “Bermuda continues to strengthen its position as a domicile for the sharia compliant international financial services industry such as Re-takaful (re-insurance), mutual fund and trust business. We consider the Republic of Indonesia a key strategic partner in furthering growth in this vital international business sector. Bermuda will work closely with the Indonesian government in international cooperation through the internationally agreed tax standard in which TIEAs play such an important part.”
“As with the others we have signed, it includes all standard means to ensure due process is followed in tax information requests to Bermuda, including provisions to protect the confidentiality of information provided under the TIEA. It also adheres to public policy considerations and provisions related to protecting legal privilege,” she said.
Brad Kading of the Association of Bermuda Insurers and Reinsurers (ABIR) and one of Bermuda’s industry stakeholders supportive of our TIEA programme, commenting on the agreement, said:
“We congratulate the premier and the Ministry of Finance on completion of the TIEA with Indonesia. The country is an enormous growth market in the 21st century. It’s critically important for Bermuda to build relationships with emerging economies around the world. Marine, aviation, energy, property and liability are all important markets in this country. Indonesia and Southeast Asia are important markets for Bermuda’s (re)insurers. Bermuda’s Takaful legal framework helps insurers work with this market.”
Following the signing, Cox extended a formal invitation to Ambassador Thamrin and to the Indonesian minister or ministers directly responsible for finance and international business/trade to visit Bermuda and obtain a first-hand perspective of Bermuda’s international financial services infrastructure and regulations, and to sample Bermuda’s world renowned hospitality as a leading tourism destination.