AEOI, or Automatic Exchange of Information, refers to the exchange of information between tax authorities in response to a request for administrative assistance. It involves the systematic and periodic transmission of “bulk” taxpayer information by the source country to the residence country concerning various categories of income (e.g., assets, dividends, interest). It can provide timely information on non-compliance if tax has been evaded on an investment return or underlying capital sum, even if tax administrations had no prior indicators of non-compliance. AEOI allows the tax authorities of the nation in which the taxpayer is registered to swiftly assess the Taxpayer’s Tax Return (SPT) to verify the accuracy of the declared offshore assets, liabilities and income.

According to the OECD, 113 countries, including Indonesia, have agreed to this framework of information exchange by 2022.However, the number of participating jurisdictions decrease in the 2023 lists as per Indonesia Director General of Tax (DGT). In the 2023 list, Liberia, Moldova, Morocco, and Uganda have been removed. On the other side, Thailand, has been added. There are currently 110 nations that have committed to the AEOI.