Issues a new regulation on tax holiday
Effective April 2018, the Government introduced a new regulation (Regulation No. 35/PMK.010/2018) on Tax Holiday, as an incentive to conduct business in Indonesia. The new regulation provides greater convenience and more flexibility for investors to obtain a tax holiday by revising some of the previous requirements, such as the expansion of the number of pioneer industries (from 8 to 17 sectors) that can obtain the tax incentive. It also requires a lower minimum capital requirement and changes the legal form of investment from only the establishment of a new company to including an additional capital investment by an already established entity.
Type: Promotion and facilitation (Investment incentives)
Industry: Not industry specific
- KPMG, Revised Tax Holiday Regulations More Attractive for Potential Investors, May 23, 2018
- EY Global Tax Alert, Indonesia releases new regulations on tax holidays, Apr 11, 2018