There Are The List of Business Ventures That Are Eligible for Jokowi’s ‘Super Tax’ Reduction

Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) has signed the Government Regulation (PP) Number 45 of the Year 2019.

This PP is an amendment to The Government Regulation Number 94 of the Year 2010 regarding the calculation of taxable incomes and Settlement of Income Tax In Current Year

The new points in this regulation are the facility of exemption or for corporate income tax and facility of reducing net income in the context of investment at certain business activities.

The following is summarized by CNBC Indonesia, Tuesday (07/09/2019) from PP 45 of the Year 2019.

Who are eligible for these incentives? Here is the list:

  • A Taxpayer who makes new investment constituting pioneer industry, who does not obtain facilities as intended in Article 31A of Income Tax Law can be provided with the facility of exemption from or reduction of Corporate Income Tax as intended in Article 18 paragraph (5) of Law Number 25 of the Year 2007 regarding Capital Investment.
  • Pioneer industries as mentioned shall be industries possessing a broad connection,  giving added value and high externality, introducing new technology, as well as possessing strategic values for the national economy.
  • Domestic Corporate Taxpayers conducting new investments or business expansion in certain business fields that:

a. is a labor-intensive industry; and

b. not obtaining facilities as referred to in Article 31A of the Income Tax Law or facilities as mentioned to can be given with income tax facilities in the form of net income reduction of 60% (sixty percent) of the total investment in the form of tangible fixed assets including land used for main business activities, which is imposed for a certain period of time.

  • Domestic Corporate Taxpayers who carry out work practice, apprenticeship and / or learning activities in the framework of fostering and developing certain competency-based human resources can be given a reduction in gross income of no more than 200% (two hundred percent) of the total costs incurred for activities work practices, apprenticeship, and/or learning.
  • Domestic Corporate Taxpayers carrying out certain research and development activities in Indonesia can be given a reduction in the gross income of no more than 300% (three hundred percent) of the total costs incurred for certain research and development activities in Indonesia which are charged within a certain period.

“Certain research and development activities as mentioned are research and development activities carried out in Indonesia to produce inventions, and innovations, master new technologies, and/or transfer technology for the development of industries to increase the competitiveness of national industries,” stipulated Article 29C paragraph (2 ) of this PP.



Announcement Number PENG – 521/PJ.01/2017
Announcement Number PENG – 521/PJ.01/2017

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