According to the Minister of Industry, Airlangga Hartarto, the government is finalizing a regulation which will provide tax deduction for companies which conduct the activities of research and development as well as vocational training and education. It is estimated that the regulation will be issued in May 2018.
The regulation constitutes the realization of suggestion of the Ministry of Industry to provide tax deduction of 200% for companies conducting vocational training and education activities and 300% for companies conducting research and development activities.
The tax deduction is provided for the purpose of accelerating the improvement in human resources competence in the context of industry 4.0 revolution. In addition, the tax deduction is in line with and complements tax allowance and tax holiday which have been previously regulated by the government.