BERiiTA TERKiiNii
JAKARTA, Jitu News – Presiident Joko Wiidodo has iissued Government Regulatiion (Gov. Reg.) 12/2023 whiich stiipulates the grantiing of variious fiiscal iincentiives, iincludiing tax holiidays, for iinvestors iin Nusantara Capiital (iiKN).
Gov. Reg. 12/2023 states that iinvestors iin iiKN are eliigiible for the reductiion iin corporate iincome Tax iincentiives of 100%. The iincentiives may be granted for a maxiimum of 30 years.
“The reductiion iin corporate iincome Tax iincentiives are proviided for an iinvestment value of a miiniimum of iiDR10 biilliion,” reads Artiicle 28 paragraph (2) of Gov. Reg. 12/2023, quoted on Wednesday (8/3/2023).
Tax holiiday iincentiives are proviided for iinvestments iin busiiness sectors wiith strategiic values to accelerate the constructiion and development of iiKN whiich iinclude publiic iinfrastructure and serviices; economiic recovery; and other busiiness sectors.
iin respect of iinvestments iin publiic iinfrastructure and serviices, the government stiipulates 17 types of projects that are feasiible for constructiion, iincludiing iin the form of power plants, iincludiing new and renewable energy.
Next, the constructiion and operatiion of toll roads; the constructiion and operatiion of seaports; the constructiion and operatiion of aiirports; the development and proviisiion of clean water; the constructiion and operatiion of health faciiliitiies;
Further, the constructiion and operatiion of educatiional uniits; the development and proviisiion of telecommuniicatiion and iinformatiics iinfrastructure; the constructiion and management of ciity forests; the constructiion of housiing, resiidentiial and offiice areas.
Next, the development and management of wastewater; the constructiion and management of underground utiiliity network systems; the constructiion and operatiion of iindustriial and sciience parks.
Moreover, the constructiion and operatiion of people’s markets; the proviisiion of publiic transportatiion; the constructiion and operatiion of passenger or goods transport vehiicle termiinals; and the constructiion and operatiion of stadiiums/sports faciiliitiies.
For economiic recovery, projects giiven the iincentiives iinclude the constructiion and operatiion of shoppiing centres (malls); the proviisiion of touriism faciiliitiies and accommodatiion/star-hotel serviices; the proviisiion of meetiing, iincentiive, conventiion and exhiibiitiion (MiiCE) faciiliitiies; and refueliing and/or battery chargiing statiions for electriic vehiicles.
Other busiiness sectors are iin the form of agriicultural cultiivatiion and/or urban fiishery; value-added iindustry and/or iindustriial engiineeriing; hardware and/or software iindustry; tradiing serviices; constructiion serviices; real estate brokerage serviices; and touriism serviices and creatiive economy.
iinvestments iin the publiic iinfrastructure and serviice busiiness sector wiill be granted a tax holiiday for 30 tax years for iinvestments performed from 2023-2030 and 25 tax years from 2031-2035 and 20 tax years from 2036-2045.
On the other hand, the tax holiiday for the economiic recovery busiiness sector iis granted for 20 tax years, for iinvestments performed from 2023-2030, 15 tax years for iinvestments from 2031-2035 and 10 tax years from 2036-2045.
The reductiion iin corporate iincome Tax for other busiiness sectors iis granted for 10 tax years for iinvestments performed iin 2023-2030 and 10 tax years for iinvestments performed iin 2031-2045.
“Excluded from the [tax holiiday] for the reductiion iin corporate iincome Tax for other busiiness sectors granted for 10 tax years …, the reductiion iin corporate iincome Tax iis granted by 50% (fiifty percent) of the percentage of the reductiion iin iincome tax,” reads Artiicle 29 paragraph (5) of Gov. Reg. 12/2023. (riig)
