Ministry of Finance Ensures Tax Holiday Is Free Tax Agency

By : Herry Barus And Aldo Bella Putra | Friday, March 30 2018 - 15:00 IWST

INDUSTRY.co.id - Jakarta - Head of Fiscal Policy Agency of the Finance Ministry, Suahasil Nazara, confirmed that taxpayer incentives would be free from the obligation to pay corporate income tax (PPh) of 100 percent.

Suahasil, after attending a coordination meeting, discussed the construction of a refinery in Jakarta on Thursday (29/3/2018) said the provision of "tax holiday" is given to upstream pioneer industries such as refineries and basic chemicals that had never before existed in Indonesia.

He also added that the revised "tax holiday" regulation also provides convenience in terms of tax exemption incentive application process, as the application can be submitted simultaneously with the application for investment registration.

"If the first license has to come out first, then apply for a tax holiday, now it can be done simultaneously with investment registration and can be processed immediately," said Suahasil.

Suahasil said the investment permit application process can be done quickly through the online single submission system in BKPM and the investment value will be audited by the Directorate General of Taxation.

"If you have built an investment, audited taxes or not, if the promise of Rp30 trillion, is not investing Rp30 trillion, then all our projects calculate the following with 'assessment'," he said.

He added that for the investment of Rp500 billion-Rp1 trillion, the company can get the corporate tax exemption for five years and for investment of Rp1 trillion-Rp5 trillion to get seven years of liberation.

Then, for an investment of Rp5 trillion-Rp15 trillion can get a 10-year exemption, for an investment of Rp15 trillion-Rp30 trillion to get 15 years of freedom and above Rp30 trillion get 20 years.

"Now in the new FMD, we write explicitly the value of such investment, can get 'tax holiday' so many years, if not there first," said Suahasil.

In addition to the maximum corporate tax exemption of 20 years, investors can also get an additional two years of corporate income tax by 50 percent according to evaluation results.

Suahasi is not worried that the government is losing tax revenue from the granting of tax incentives, because additional taxes can be earned once the investment starts.

"The government does not lose money because the industries do not exist. We 'relieve' corporate income tax, but employee income taxes, VAT and others remain paid," he said.

He added the Minister of Finance Regulation (PMK) on the revision of the "tax holiday" will be issued next week, together with the issuance of Government Regulation (PP) on the revision of "tax allowance".

Suahasil expects the revision of this tax regulation to encourage improved investment climate in Indonesia to be more qualified and contribute to economic growth. (Ant)

News Comment

Today's Industry

Illustration of Illegal Cigarettes ((Ist)

Jumat, 21 September 2018 - 23:32 WIB

The Impact of Illegal Cigarette Distribution, the State Losses IDR 1 Trillion Per Year

Circulation of illegal cigarettes (without excise duty) in the country is still quite large. Based on the findings of a team from Gadjah Mada University (UGM) through a survey of illegal cigarette…

Hikvision Launches EZVIZ

Jumat, 21 September 2018 - 20:24 WIB

US Dollar Rises, CCTV Market Has Decreased Sales

The rupiah exchange rate is still showing a downward trend. Garuda's currency exchange rate is still at the level of Rp. 14,898 per US dollar. The weakening of the rupiah had an impact on the…

Menteri Koordinator Bidang Perekonomian Darmin Nasution

Jumat, 21 September 2018 - 17:30 WIB

Indonesia Food Watch Called Coordinating Minister for Darmin Alone to Food Data

Jakarta - Indonesia Food Watch opens a voice related to the current polemic on rice imports so that there is a pro contra of import policy. Moreover, recently the Coordinating Minister for Economic…

Mentan Andi Amran Sulaiman (Dok Industry.co.id)

Jumat, 21 September 2018 - 17:00 WIB

Amid Rupiah Weakens, Minister of Agriculture Boosts Exports

In the midst of the recent swift exchange rate against the dollar, Minister of Agriculture (Minister of Agriculture) Andi Amran Sulaiman again boosted the volume of food commodity exports. This…

Mentan Amran Andi Sulaiman

Jumat, 21 September 2018 - 16:30 WIB

Minister Amran; Don't Play and Try Corruption

Lembang West Java - Minister of Agriculture, Andi Amran Sulaiman, conveyed this, before the Horticultural Farmers Community, at the 2018 Horticultural Spectrum event, in Balitsa Lembang, Thursday…