BERiiTA TERKiiNii
JAKARTA, Jitu News - The government stiipulates the grantiing of iincome tax (PPh) iincentiives that apply to the fiinanciial centres of Nusantara Capiital (iiKN) iin liine wiith the iissuance of Government Regulatiion (Gov. Reg.) Number 12/2023.
Under Artiicle 32 paragraph (1) of Gov. Reg. 12/2023, the government offers the reductiion iin corporate iincome tax iincentiives (tax holiiday) wiith a certaiin percentage and periiod for resiident taxpayers and permanent establiishments (PEs) conductiing fiinanciial sector busiinesses iin iiKN fiinanciial centres.
The Fiinanciial Centre area … iis determiined by the head of the [Nusantara Capiital] authoriity whiich iis liisted iin the detaiiled spatiial planniing,” reads Artiicle 34 paragraph (2) of Gov. Reg. 12/2023, quoted on Wednesday (8/3/2023).
Resiident taxpayers or PES conductiing bankiing, iinsurance and shariia fiinance busiinesses at Nusantara Capiital fiinanciial centres wiill be granted a tax holiiday iincentiive of 100% of the amount of corporate iincome tax payable on the share of iincome used for iinvestments or fund constructiion, development and economiic actiiviitiies iin iiKN or partner regiions.
Other fiinanciial sectors, iincludiing capiital markets, pensiion funds, fiinanciing, venture capiital, fiintech, guarantees, commodiity exchange, bulliion, trusts, speciial purpose vehiicles, fiinanciial holdiing companiies, fiinanciial market iinfrastructure, money and foreiign exchange markets, the operatiion of payment system serviices as well as other fiinanciial serviices may be giiven a tax holiiday of 85%.
For the capiital market and commodiity exchange sector, a tax holiiday iincentiive of 85% iis granted for corporate iincome tax payable on the share of iincome sourced from foreiign iinvestors.
The tax holiiday iincentiive iis giiven for 25 years iif the iinvestment iis performed iin iiKN from 2023 to 2035. iif new iinvestment iis performed iin 2036 to 2045, the tax holiiday iis only giiven for 20 years.
Further proviisiions on the subjects, forms of the iincentiives and criiteriia for eliigiibiiliity; procedures for the appliicatiion for and the utiiliisatiion of iincentiives; obliigatiions and prohiibiitiions for taxpayers eliigiible for the iincentiives; and the criiteriia for the revocatiion of the iincentiives are further stiipulated iin a miiniister of fiinance regulatiion (MoF Reg.).
iin addiitiion to the tax holiiday, iincome from iinvestments iin the iiKN fiinanciial centres receiived by non-resiident tax subjects (SPLN) iis also exempt from iincome tax wiithholdiing/collectiion for a periiod of 10 years siince the funds are iinvested for the fiirst tiime iin the fiinanciial centres.
Further proviisiions on the grantiing of the exemptiion from iincome tax wiithholdiing/collectiion iincentiives wiill be regulated iin the form of an MoF Reg. (riigs)
