Income tax facilities are seen as being an excellent means of attracting greater amounts of capital investment in Indonesia (see ILB No. 484). However, the guidelines and procedures for submitting an application to obtain these facilities need to be simplified and quicker. With this in mind, the Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal / BKPM) has issued Regulation No. 2/P/2008. The Regulation sets out the guidelines and procedures that must be followed when submitting application to obtain income tax facilities for certain businesses and in certain regions.
Application for income tax facilities are to be submitted to the Minister of Finance through the Head of the Indonesian Investment Coordinating Board. The application must be submitted by a limited liability company (Perseroan Terbatas / PT) or Cooperative as stated in Government Regulation No. 1 of 2007 as amended by Government Regulation No. 62 of 2008.
The form for the application is a standard form and is attached to the Regulation as Attachment I. The form must include a photocopy of the taxpayer number of the applicant, a photocopy of the agreement for capital investment, a photocopy of the Deed of Establishment of the company, and a capital investment activity report.
Once a completed application is submitted the Head of the BKPM will issue a recommendation that the income tax facilities be granted to the applicant. This recommendation will be issued within 5 working days and sent to the Director General of Tax on the form contained in Attachment II to this Regulation. Where the application does not meet the requirements for a recommendation the Head of the BKPM will return the application to the applicant.
Once the Director General of Tax has received the recommendation a decision confirming the grant of the requested income tax facilities is to be issued. This decision is to be issued within 10 working days with a copy sent to the applicant and a copy sent to the Head of BKPM.
This Regulation repeals and replaces Head of BKPM Regulation No. 89/SK/2007.
The Regulation was issued on 13 October 2008 and enacted on 14 October 2008. The Regulation has been in force since the date of its enactment.
Income tax facilities are seen as being an excellent means of attracting greater amounts of capital investment in Indonesia (see ILB No. 484). However, the guidelines and procedures for submitting an application to obtain these facilities need to be simplified and quicker. With this in mind, the Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal / BKPM) has issued Regulation No. 2/P/2008. The Regulation sets out the guidelines and procedures that must be followed when submitting application to obtain income tax facilities for certain businesses and in certain regions.
Application for income tax facilities are to be submitted to the Minister of Finance through the Head of the Indonesian Investment Coordinating Board. The application must be submitted by a limited liability company (Perseroan Terbatas / PT) or Cooperative as stated in Government Regulation No. 1 of 2007 as amended by Government Regulation No. 62 of 2008.
The form for the application is a standard form and is attached to the Regulation as Attachment I. The form must include a photocopy of the taxpayer number of the applicant, a photocopy of the agreement for capital investment, a photocopy of the Deed of Establishment of the company, and a capital investment activity report.
Once a completed application is submitted the Head of the BKPM will issue a recommendation that the income tax facilities be granted to the applicant. This recommendation will be issued within 5 working days and sent to the Director General of Tax on the form contained in Attachment II to this Regulation. Where the application does not meet the requirements for a recommendation the Head of the BKPM will return the application to the applicant.
Once the Director General of Tax has received the recommendation a decision confirming the grant of the requested income tax facilities is to be issued. This decision is to be issued within 10 working days with a copy sent to the applicant and a copy sent to the Head of BKPM.
This Regulation repeals and replaces Head of BKPM Regulation No. 89/SK/2007.
The Regulation was issued on 13 October 2008 and enacted on 14 October 2008. The Regulation has been in force since the date of its enactment.
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