Investor Presentaiton
Tax Incentives and Reform
Lower
Tax Rate for the
Corporate
Income Tax
Law No. 2/2020, PERPPU 1/2020,
PP 30/2020
25%
<2020
RP
22%
2020-2021
Other improvements:
1. E-filing for CIT, VAT, worker
income tax (payroll)
2. Faster VAT Restitution
20%
2022 dst
Investment Facilities through OSS System
Tax Holiday and Mini Tax Holiday
Corporate income tax exemption of 50-100% for 5-20
years for investments in pioneer industries.
Tax Allowance
Income deduction before corporate income tax of 30%-
TA (or 60%-IA for labor-intensive industries) of the
investment value for 6 years for investments in certain
business fields and/or areas.
Import Duty Facility
Import duty exemption incentives for imports of
machinery as well as goods and materials for industry
and service industries.
Investment Facility in SEZ
Tax Holiday for Main Activities, Tax Allowance for Other
Activities, for investors investing in Special Economic
Zones.
*
Import Duty, Excise and Tax facilities related to Import
do not go through OSS.
Source: Ministry of Investment (BKPM)
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