Tax Incentive in Indonesia (2018)

Tax Incentive in Indonesia (2018)

There is a wide range of attractive tax incentives in Indonesia:

  1. Double tax relief
    – Credit for WHT directly paid on income received or accrued in a foreign country. The credit is limited to the lesser of the tax payable in Indonesia on the foreign income or the amount of the foreign tax paid.

  2. Tax holiday
    – Income tax reduction of between 10% and up to 100% are available for 5-15 years (might be extended up to 20 years).
    – Industries eligible for tax holiday:
         + Upstream metal
         + Oil refinery
         + Organic basic chemicals based on oil and natural gas
         + Production of industrial machines
         + Processing based on agriculture, forestry and fisheries
         + Telecommunication, information and communication equipment
         + Maritime transportation
         + Processing industry that is the main industry in a Special Economic Zone
         + Economic infrastructure not included in the Governmental and Business project (KPBU) scheme.
  3. Tax allowance
    – Total net income reduction of 30% of investment which is prorated at 5% per year for a six-year period
    – Extension of tax loss carry forward period up to 10 years
    – Reduction of WHT on dividends paid to non-residents to 10% (or a lower rate according to the applicable double taxable agreement)
    – 145 business field eligible for tax allowance
  4. Direct tax incentives for new enterprises
    – Tax exemption on the import of capital goods and raw materials
  5. Free trade zones and free port areas
    – No import duties and other taxes on the import of goods
  6. Mergers and acquisitions
    – Partial relief from 5% transfer of title tax on land and buildings, and a full relief from 2.5% income tax on the transfer of land and buildings
  7. Special economic zones (SEZ)
    – Corporate income tax reduction granted to new tax payers with new capital invested in the production chain of main activities in a SEZ (reduction ranges from 20% to 100% for a period of 5-25 years)
  8. Import duty exemptions
    – Import of machines, goods and materials for production exempt from import duty for a period of two years
    – Import duty exemption is granted for two years based on the installed machine capacity for production purposes and can benefit from a one-year extension
    – If the company uses at least 30% of local machines, import duty exemption is available for additional product for four years
    – Imported machines, goods and raw materials can be exempt from import duty if:
         + Not produced locally
         + Local machines are available but do not meet requirements.

Contact us to discuss about tax incentives in Indonesia

Bizindo is here to play as your business partner and solve your company issues. 
Kindly fill in the form below and our consultant will get in touch with you shortly.

Customer Overall

  • Mr.
  • Mrs.
  • Ms.
  • Miss
  • Prof.
  • Dr.

This Post Has 29 Comments

  1. These shingles are designed to resembe an all-natural material, like cedar or slate.
    It has corrosion-resistant pproperties and therefore, is more duraable
    than other forms. If you want someting which has a different look,you maay want to choose clay or slate tiles. http://www.atlasroofing-local.com/

  2. These shingles are designed to resemble an all-natural material, like cedar or slate.
    It hass corrosion-resistant properties and therefore, is moree durable than ther forms.

    If you want something which hhas a different look, you may want to choose clay or slate tiles. http://www.atlasroofing-local.com/

  3. Ahaa, its pleasant discussion concerning this piece of writing here
    at this blog, I have read all that, so now me also commenting at this place.

    Does your site have a contact page? I’m having a tough time locating it but, I’d like to send
    you an email. I’ve got some creative ideas for your blog you might be interested
    in hearing. Either way, great site and I look forward to seeing it improve over time.
    I’ve been browsing online more than 4 hours today,
    yet I never found any interesting article like yours.
    It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content
    as you did, the web will be a lot more useful than ever
    before. http://foxnews.co.uk

  4. Simply want to say your article is as astounding.

    The clearness in your post is simply excellent and i can assume you’re an expert on this subject.
    Fine with your permission allow me to grab your RSS feed to keep updated with
    forthcoming post. Thanks a million and please carry on the gratifying work.

  5. Wow, this piece of writing is good, my younger sister is analyzing
    these kinds of things, thus I am going to convey her.

  6. Its such as you read my mind! You seem to grasp so much approximately this, such as
    you wrote the book in it or something. I believe that you could do with some percent to drive the message home a little bit, however instead of
    that, that is fantastic blog. An excellent read. I will certainly be back.

  7. fantastic publish, very informative. I wonder why
    the other specialists of this sector don’t notice this. You should continue your writing.
    I am sure, you’ve a great readers’ base already!

  8. Way cool! Some extremely valid points! I appreciate you
    penning this post plus the rest of the site is also really good.

  9. Simply wish to say your article is as astounding. The clearness in your
    put up is simply cool and i can assume you are an expert
    in this subject. Fine with your permission let me to clutch your RSS feed to stay up to date with drawing close post.
    Thanks a million and please carry on the gratifying work.

  10. I could not refrain from commenting. Very well written!

  11. Hi everyone, it’s my first pay a visit at this website, and article is
    genuinely fruitful in support of me, keep up posting these
    types of articles.

  12. Heya i am for the first time here. I came across this board and I find
    It truly useful & it helped me out much. I
    hope to give something back and aid others like you aided me.

  13. Good post. I am dealing with a few of these issues as well..

  14. I am regular visitor, how are you everybody? This piece of writing posted
    at this site is genuinely good.

  15. Hello, i read your blog occasionally and i
    own a similar one and i was just curious if you get a lot of spam comments?
    If so how do you stop it, any plugin or anything you can advise?

    I get so much lately it’s driving me crazy so any
    assistance is very much appreciated.

  16. I was recommended this web site by my cousin. I am not sure whether this post is written by him as nobody else
    know such detailed about my problem. You’re incredible!
    Thanks!

  17. Hello, I enjoy reading all of your article. I wanted to write a little comment to support you.

  18. These are in fact enormous ideas in concerning blogging. You have touched some good points here.
    Any way keep up wrinting.

  19. I don’t even know how I ended up here, but I thought this post was great.
    I do not know who you are but certainly you are
    going to a famous blogger if you aren’t already 😉 Cheers!

  20. Hello There. I found your blog using msn. This is a very well written article.
    I’ll make sure to bookmark it and return to read
    more of your useful info. Thanks for the post. I’ll certainly comeback.

  21. Hello it’s me, I am also visiting this site on a regular basis, this web page is genuinely nice and the users are
    truly sharing pleasant thoughts.

  22. I do agree with all of the ideas you’ve presented for your post.

  23. Great delivery. Great arguments. Keep up the amazing effort.

  24. I think this is among the most vital info for me.
    And i am glad reading your article. But want to remark on some general things, The website style is great,
    the articles is really great : D. Good job, cheers

  25. Yes! Finally something about website.

Leave a Reply

Close Menu
WhatsApp chat