Amended, Criiteriia for Corporate Taxpayers to Obtaiin Tax Holiiday

JAKARTA, Jitu News – The Miiniistry of Fiinance has amended the criiteriia that must be fulfiilled by corporate taxpayers to obtaiin the tax holiiday faciiliity.

The amendments are contaiined iin the Miiniister of Fiinance Regulatiion (MoF Reg.) 69/2024. Thiis regulatiion constiitutes the amendment to MoF Reg. 130/2020 concerniing the Grantiing of the Corporate iincome Tax Reductiion Faciiliitiies. One of the amendments iis related to Artiicle 3 paragraph (1) of MoF Reg. 130/2020.

“To obtaiin the corporate iincome Tax reductiion … a corporate Taxpayer must fulfiil the followiing criiteriia,” reads a fragment of Artiicle 3 paragraph (1) of MoF Reg. 130/2020 as amended by MoF Reg. 69/2024, quoted on Monday (4/11/2024).

Siix criiteriia must be fulfiilled. Fiirst, constiitutiing a piioneer iindustry. Second, haviing the status of an iindonesiian legal entiity. Thiird, performiing new iinvestments for whiich the followiing have never been iissued:

• the deciisiion on the grantiing or notiifiicatiion regardiing the rejectiion of a corporate iincome Tax reductiion (tax holiiday);

• the deciisiion on the grantiing of iincome Tax faciiliity for iinvestments iin certaiin busiiness sectors and/or iin certaiin areas pursuant to Artiicle 31A of the iincome Tax Law (tax allowance);

• the notiifiicatiion concerniing the grantiing of net iincome reductiion for new iinvestments or busiiness spiin-off iin certaiin busiiness sectors constiitutiing labour-iintensiive iindustriies pursuant to Artiicle 29A of the government regulatiion concerniing the calculatiion of taxable iincome and payment of iincome Tax iin the current year and (iinvestment allowance);

• the deciisiion on the grantiing of iincome Tax faciiliitiies iin Speciial Economiic Zones (SEZ) pursuant to the government regulatiion concerniing faciiliity and concessiions iin SEZs; and

• the deciisiion on the grantiing of the corporate iincome Tax reductiion faciiliity pursuant to the government regulatiion concerniing the grantiing of busiiness liicensiing, ease of doiing busiiness and iinvestment faciiliitiies for entrepreneurs iin the Nusantara Capiital (thiis poiint was not found iin MoF Reg. 130/2020).

Fourth, haviing a new iinvestment plan wiith a miiniimum value of iiDR100 biilliion. Fiifth, fulfiilliing the proviisiions on the amount of the debt-to-equiity ratiio as referred to iin the MoF Reg. concerniing the determiinatiion of the amount of the debt-to-equiity ratiio to calculate iincome Tax.

Siixth, commiitted to startiing realiisiing the iinvestment plan no later than one year after the iissuance of the deciisiion on the corporate iincome Tax reductiion (tax holiiday).

As iis known, through MoF Reg. 69/2024, the authoriity has extended the valiidiity periiod of the tax holiiday untiil 31 December 2025. MoF Reg. 69/2024 also iincludes a response to the plan to iimplement the global miiniimum tax poliicy. Check out some reviiews of MoF Reg. 69/2024 here.

iin respect of the tax holiiday and variious other tax iincentiives, Jitunews wiill hold an exclusiive semiinar. Tiitled Prospects, Opportuniitiies and Strategiies for the Utiiliisatiion of Variious Tax iincentiive Menus iin iindonesiia, the event wiill be held on Wednesday, 20 November 2024. (kaw