Regulation of the Minister of Finance (PMK) Number 35 / PMK.010 / 2018 regulates regulates Provision Of Corporate Income Tax Deduction Facility

This regulation sets out that corporate taxpayers conducting new investments in pioneer industries may obtain reduced rate of corporate income tax of 100% of the payable corporate income tax. Such corporate income tax deduction will be granted:

  • for a period of 5 tax years for new investments with the minimum planned value of investment of Rp500,000,000,000.00 and the maximum of less than Rp1,000,000,000,000.00 or
  • for a period of 7 tax years for new investments with the minimum planned value of investment of Rp1,000,000,000,000.00 and the maximum of less than Rp5,000,000,000,000.00 or
  • for a period of 10 tax years for new investments with the minimum planned value of investment of Rp5,000,000,000,000.00 and the maximum of less than Rp15,000,000,000,000.00  or
  • for a period of 15 tax years for new investments with the minimum planned value of investment of Rp15,000,000,000,000.00 and the maximum of less than Rp30,000,000,000,000.00 or
  • for a period of 20 tax years for new investments with the planned value of investment of not less than Rp30,000,000,000,000.00.

After the expiry of the aforementioned corporate income tax holiday period, the taxpayers concerned will receive corporate income tax deduction of 50% of the payable corporate income tax for the next 2 tax year.

Pioneer industries as intended in this regulation include, among others, upstream base metal industry (steel and non-steel), oil and gas refinery industry, oil, gas and coal-based petrochemical industry, inorganic base chemical industry, organic base chemical industry for pharmaceutical raw materials, semiconductor and other main computer component manufacturing industry which is integrated with computer manufacturing industry, etc., as will be set out in a regulation of the Investment Coordinating Board. Upon exhausting the corporate income tax deduction facility granted under this regulation, the relevant taxpayer may receive income tax facilities for investments in certain business sectors and/or certain zones as intended in Government Regulation on income tax facilities fasilitas for investments in certain business sector and/or certain zones insofar as they comply with the applicable provisions, however such tax facility cannot be granted at the same time with the tax facility granted under this regulation. The next sections of this regulation contain detailed provisions on the requirements and procedures for obtaining the corporate income tax holiday facility.

This regulation has come into effect as of April 4, 2018, by revoking Regulation of the Minister of Finance Number 159/PMK.010/2015.

 

 

 

 

Source https://legalcentric.com/content/view/131870

Circulate Letter Number 14 PJ Year 2018 Mandatory Supervision of Post Tax Amnesty Period
Circulate Letter Number 14 PJ Year 2018 Mandatory Supervision of Post Tax Amnesty Period

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