Income Tax Facilities of 2015
In order to further encourage investment in Indonesia, the Indonesian government has launched a new policy on tax facilities in the field of income tax. The new tax facility policy is stipulated in Government Regulation No. 18 of 2015, in conjunction with the Ministry of Finance Regulation No. 89 / PMK.010 / 2015.
Taxation facility may be provided either to the Domestic Investment, as well as Foreign Investment, which conducts:
- In Certain Business Fields as listed in Appendix I of the Government Regulation No. 18. In 2015, and / or
- In Certain Business Fields and Certain Regions as listed in Annex II of Government Regulation No. 18 of 2015.
Tax facilities given are:
- reduction of net income of 30% of total investment in the form of tangible fixed assets including land used mainly for business, is charged for 6 years respectively at 5% per annum, calculated from the time of start of commercial operations;
- accelerated depreciation on tangible assets and amortization on intangible assets acquired in the framework of new investment and / or expansion that began in the enactment of the decision granting approval Income Tax facilities;
- the imposition of income tax on dividends paid to non-resident Taxpayer other than a permanent establishment in Indonesia by 10%, or lower tariff by double taxation treaties in force; and
- compensation for losses that are longer than 5 years but not more than 10 years.
The details of the tax facilities, anyone who can obtain the tax facilities, as well as the procedures for submission of application to obtain tax facilities, can be seen in the Minister of Finance No. 89 / PMK.010 / 2015.
Broadly speaking, tax facilities granted, in fact no different from tax facilities those previously granted. What is different is the type and number of the Business Sector and Specific Areas that can be obtained tax facilies is more numerous.