Indonesia to Offer Investors a Simplified Tax-Holiday Program

  • Indonesia will unveil a simplified scheme for tax holidays and state oil firm Pertamina should be among the first to benefit, government officials said.
  • Boosting investment is a priority for President Joko “Jokowi” Widodo as household consumption – the main engine of growth for Indonesia’s economy – has remained sluggish in recent years.
  • Under the revised rules due to be signed next week by the finance minister, a company can apply for income tax relief when it requests investment permits, Suahasil Nazara, head of the ministry’s fiscal policy office, told reporters on 29 Mar 18.
  • He said the rules are also simplified so that the investment size will determine the number of years for which a company can get tax discount.
  • An investment of IDR500bn to IDR1tr will make a company eligible for five years holiday for corporate tax, Nazara said. The maximum holiday will be 20 years, given to those investing more than IDR30tr.
  • Current tax holiday rules offer a 10-100% income tax reduction for firms in “pioneering industries” for a maximum 15 years, though the minister can give an additional five years.
  • “Pioneering industries” are defined as those that, among other things, create added value and introduce technology. Among such industries are maritime transport, telecommunications, and processing of metals and agricultural products.

External Link : http://jakartaglobe.id/business/indonesia-offer-investors-simplified-tax-holiday-program/

31-Mar-2018


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