Indonesian government revised tax holiday regulation to boost investment

The Indonesian government has issued Regulation of Minister of Finance (PMK) number 159/PMK.010/2015 concerning the Provision of Institutional Income Tax Reduction Facility. One of new issues in this PMK is the expansion of sectors designated as pioneer industries and gaining institutional income tax reduction (tax holiday) from five to nine. The additional industries are agricultural product-based manufacture industry, marine transportation industry, manufacture industry that is the main industry in Special Economic Zones, and economic infrastructure other than those using a government and business entity partnership scheme. For machinery and communication equipment industries, the required minimum investment amount has been lowered from IDR 1 trillion to IDR 500 billion. Also, the procedure of filing tax holiday became simpler. For example, filing for tax deductions by companies can be done through One Stop Services (OSS).

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Manufacturing

• Sources:

  • Ministry of finance, Indonesia, What's new on Tax Holiday Regulation, http://www.kemenkeu.go.id/en/Berita/what%E2%80%99s-new-tax-holiday-regulation, 27 Aug 2015
  • Ministry of finance, Indonesia, Boosting investment in Country, Government to revise tax holiday regulation, http://www.kemenkeu.go.id/en/Berita/boosting-investment-country-government-revise-tax-holiday-regulation, 24 Jul 2015
  • Jakarta Post, New tax holiday rule expands industry coverage , http://www.thejakartapost.com/news/2015/08/25/new-tax-holiday-rule-expands-industry-coverage.html, 25 Aug 2015