KONSEP EMAIL PROPOSE CLOSE MAP VOLVO

Cc per-erik.kristiansson@skatteverket.se
peter.nowen.wirkkala@skatteverket.se

Dear Anna,

I’m writing to you in regard to our outstanding MAP case V*. To my knowledge, you have submitted 3
MAP requests on V* with case references as follows:
WHT period allowed
Date of
Notification WHT period First by DTA to be
Num. Taxpayer’s
letter ID requested notification requested as MAP
MAP request
case*
(1) (2) (3) (4) (5) (6)
131 144151- March 30 01 April 2014 – 31
1 2011-2015
17/5322 (503) 2017 Tax slips December 2015
202 159084- March 29 issued 30 March 2016 – 31
2 2016-2018
19/5322 (51) 2019 within the December 2018
period 12 May 2019 – 11 May
3 22OKEN73 May 11 2022 2019-2022
2022
*Indonesia-Sweden DTA limits MAP requests up to 3 years since the first notification. This brings us to
the covered MAP period as shown in the table.

Regarding the determination of covered periods, I am still at disagreement with your view that the first
notification should be based on the most recent decision as you mentioned in your comment on DGT’s
position paper. I am of the opinion that the action as mention in the Indonesia-Sweden Convention is
the action of the withholding tax slip issued thus the covered periods should be determined within three
years of the withholding tax slip issued. You also refer to the OECD Commentary regarding this issue,
however this is just an interpretation, and not binding for us.

The first two requests have been followed up by exchanging positions with the latest meeting held back
in early 2021. Considering that the MAP process has been going on for some time, I think it is time for
DGT to show the best endeavour to reach an agreement on the case. Also, as part of the spirit of moving
forward, I propose a condition where both CAs mutually agreed on the fact that the payment made from
an Indonesian entity will be considered as not royalty. And the terms of first notification in this case shall
refer to the issuance of tax slip of the WHT. Therefore, DGT is on the view that the MAP request shall
limit its coverage to the period allowed by the DTA, which are tax slips issued within the period of 3
years before the MAP requested.

Thus, DGT is willing to provide relief in accordance with Indonesia Income Tax Law and Article 11 of DTA
only limited to the WHT (as provided by tax slips) held within the period as shown in column (6) of the
table with conditions that:
a. In the event that tax assessment letter has been issued by DGT during the MAP negotiation period,
DGT will amend the tax assessment letter in accordance with the mutual agreement.
b. In the event that tax assessment letter has not been issued during the MAP negotiation period,
Sweden entity shall request for tax refund as regulated in MoF Reg. Number 187 Year 2015
I believe this proposal shall also apply to our newest case.

In summary, principally DGT agrees with your position and hopes that it can be finalized either through a
virtual CA Meeting (I propose Teams meeting on October 25 at 2pm 2 pm Jakarta time for our final
discussion) or by drafting a follow-up closing letter or mutual agreement.

I’d be happy to elaborate more on our position and feel free to contact me or my team.
Look forward to hearing from you.

Warmest regards,
Yanu