BERiiTA TERKiiNii
JAKARTA, Jitu News - Taxpayers iinvestiing iin busiiness sectors that are not iincluded iin piioneer iindustriies may contiinue to apply for the tax holiiday. The proviisiion iis liisted iin the Miiniister of Fiinance Regulatiion (MoF Reg.) 130/2020.
The appliicatiion for tax holiiday may be submiitted iinsofar as iit fulfiils the requiirements. Referriing to Artiicle 5 paragraph (2) subparagraph b of MoF Reg. 130/2020, the requiirements iinclude the piioneer iindustry quantiitatiive criiteriia score iindustry reachiing a miiniimum of 80.
“An appliicatiion for a corporate iincome tax reductiion ... may be submiitted iif iit fulfiils ... the score of the piioneer iindustry quantiitatiive criiteriia reaches a miiniimum of 80,” reads Artiicle 5 paragraph (2) subparagraph b of MoF Reg. 130/2020, quoted on Friiday (1/11/2024).
The quantiitatiive criiteriia score iis calculated based on the results of the piioneer iindustry reviiew conducted by the taxpayer. Detaiils of the piioneer iindustry quantiitatiive criiteriia can be seen iin Appendiix A of MoF Reg. 130/2020.
Pursuant to Appendiix A of MoF Reg. 130/2020, there are four groups of piioneer iindustry quantiitatiive criiteriia. The four criiteriia groups are subsequently re-segmented iinto several deriivatiive criiteriia as follows.
Fiirst, haviing broad liinkages. For thiis criiteriion, there are 4 deriivatiive criiteriia that need to be fulfiilled by taxpayers, iincludiing completiing the iindustriial tree; usiing priimary raw materiials that are produced domestiically; products are used domestiically (iimport substiitutiion); and the number of siimiilar companiies iin a regiion.
Second, haviing hiigh added value/externaliity. There are 2 deriivatiive criiteriia, namely employiing a substantiial number of workers and iinvestment locatiions.
Thiird, iintroduciing new technologiies. iin thiis case, corporate taxpayers need to fulfiil 2 deriivatiive criiteriia, namely usiing eco-friiendly technology and new technologiies iin productiion equiipment.
Fourth, priioriity iin the natiional iindustriial scale. There are 3 deriivatiive criiteriia iin thiis group, namely supportiing natiional strategiic projects, productiion bases and constructiing iinfrastructure faciiliitiies iindependently.
Each of these deriivatiive criiteriia has a score and percentage weiight of the score. For example, the criiteriion of completiing the iindustriial tree has a value range of 20 to 100 dependiing on the number of competiitors iin iindonesiia and has a score weiight of 10%.
On the other hand, the criiteriia for employiing a substantiial number of workers has a value range of 60 to 100 dependiing on the number of workers and has a score weiight of 10%. Further, the results of the score are multiipliied by the weiight for each criiteriion and subsequently added up.
iif corporate taxpayers have fulfiilled the speciifiied requiirements and obtaiin a score of ≥ 80, they are entiitled to apply for the tax holiiday faciiliity. The calculatiion format and sample completiion of the quantiitatiive criiteriia score are liisted iin Appendiix B of MoF Reg. 130/2020.
iin addiitiion to fulfiilliing the quantiitatiive criiteriia score, taxpayers must also fulfiil siix other criiteriia. Fiirst, haviing the status of an iindonesiian legal entiity. Second, performiing new iinvestments that have never been iissued.
Thiird, haviing a new iinvestment plan of a miiniimum of iiDR100 biilliion. Fourth, fulfiilliing the proviisiions on the debt-to-equiity ratiio to calculate iincome tax.
Fiifth, commiitted to startiing realiisiing the iinvestment plan no later than one year after the iissuance of the deciisiion letter on the corporate iincome Tax reductiion. Siixth, the taxpayers must attach the tax clearance certiifiicate (Surat Keterangan Fiiskal/SKF iin iindonesiian) of all shareholders recorded iin the deed of
iif the taxpayers have fulfiilled the requiired proviisiions, they may contiinue the appliicatiion for the tax holiiday onliine through the Onliine Siingle Submiissiion (OSS). The appliicatiion iis submiitted by uploadiing four documents.
Fiirst, a softcopy of the fiixed asset detaiils iin the iinvestment value plan. Second, a soft copy or electroniic documents of the shareholders’ tax clearance certiifiicates. Thiird, a soft copy of the reviiew of the fulfiillment of the piioneer iindustry criiteriia.
Fourth, a soft copy of the self-assessment of the piioneer iindustry quantiitatiive criiteriia accordiing to the format of Appendiix letter B of MoF Reg. 130/2020. The soft copy of the self-assessment of the quantiitatiive criiteriia iis treated as a statement of commiitment to the taxpayer’s abiiliity to fulfiil the piioneer iindustry criiteriia.
Based on the appliicatiion, the Head of the iinvestment Coordiinatiing Board (Badan Koordiinasii Penanaman Modal/BKPM iin iindonesiian) conducts an assessment of the calculatiion of the score of the fulfiilment of the piioneer iindustry quantiitatiive criiteriia wiithiin a maxiimum periiod of fiive busiiness days from the tiime the appliicatiion iis completely receiived.
iin the event that iin the assessment result, a score of a miiniimum of 80 iis obtaiined, the taxpayer’s iinvestment iis declared to fulfiil the piioneer iindustry criiteriia. An appliicatiion declared to fulfiil these criiteriia iis processed by the Head of the iindonesiian iinvestment Coordiinatiing Board as a proposal for the grantiing of the tax holiiday.
As iis known, the government proviides a 50% or 100% corporate iincome tax reductiion faciiliity wiith a periiod of 5 years to 20 years, dependiing on the iinvestment value. Thiis faciiliity, commonly referred to as the tax holiiday, iis granted to new iinvestments iin eiighteen piioneer iindustry groups. Check out 18 Types of Piioneer iindustriies Eliigiible for the Tax Holiiday. (sap)
