Investor Presentaiton
Fiscal Incentives Policy to Boost the Economy
The government facilitates fiscal incentives to create a conducive investment climate, especially for industry players. Through increased
investment, it is hoped that it can strengthen the domestic industrial structure
TAX HOLIDAY &
MINI TAX HOLIDAY
TAX ALLOWANCE
INVESTMENT
ALLOWANCE
SUPER DEDUCTION
TAX
•
•
•
The criteria are new investment,
taxpayers including pioneer industries,
and income received from the main
business activities carried out.
There
are 18 eligible pioneer
industries that consist of 169 KBLI.
Pioneer industries are defined as
industries possessing broad linkages,
giving added value and high
externality, introducing
new
technology, as well as possessing
strategic value for the national
economy.
Income tax reduction are 100% &
50% (mini tax holiday) during the next
2 (two) years subsequent to the end
of the CIT reduction periods above,
the taxpayers are eligible for half of
the CIT reduction percentages
As of December 2022 year to date):
Total Investment: Rp146.5 Trillion
Tax Payer: 20 Tax Payer
Location: 10 provinces
Origin of investment: domestic and 6 countries
Source: Coordinating Ministry for Economic Affairs
• To increase direct investment
activities for certain business
fields and / or in certain
areas.
• The facilities
•
include a
and
imposition of
reduction in net income of
30% of the total investment
for six years, accelerated
depreciation
amortization,
income tax on dividends paid
to foreign tax subjects of 10%
or lower and compensation
for losses of up to 10 years.
The criteria are having a high
investment value or for
export, a large absorption of
labor; or have a high local
content.
.
Tax Payer: 16 Tax Payer
Total Investment: Rp14.3 Trillion
Approval: 19 Minister of Finance Decree
Source: OSS December 2022
•
• To encourage investment in
labor-intensive industries,
support programs for job
creation and absorption of
Indonesian workers.
⚫ Deduction from net income, of
60% of the amount invested
in tangible fixed assets,
including land, that are used
for the taxpayer's main
business activities. The
deduction is spread over six
years (10% annually), starting
from the fiscal year the
commercial
production
commences
• There are 45 labor-intensive
industrial sectors and employ
an average of 300 workers in
1 tax year.
Total Investment: Rp368,3 Billion
Investment: 2 activities
Tax payer: 2 tax payers
Source: OSS December 2022
Super Deduction Vocational
•
Engaging industry in vocational
activities to provide knowledge and
encourage the transfer of knowledge
• A maximum reduction of 200% gross
income from costs in the context of
providing
work
practice,
apprenticeship, and / or learning
activities.
•
As per September 2022, there are 186
agreement for vocational activities
(ytd)
R & D Super Deduction
•
•
Increase the role of industry in
fostering innovation and the use of the
latest technology in the production
process
Maximum gross income deduction of
300% over R&D costs carried out in
Indonesia
research
As per December 2022, there are 18
proposal for
and
development activities (ytd), with
estimated RnD cost up to Rp110.4
billionsView entire presentation