- The government is currently formulating the legal framework on Super Tax Deduction which functions as incentive for industries which organize activities designated to improve the quality of human resources, namely: 1) Vocational training and education; 2) Research and development; or 3) Innovation. In practice, Super Tax Deduction will cover at least two times of the incurred costs from organizing the said activities. Hence, the company’s payable tax will be greatly reduced.
- Previously, Indonesia already had regulation on tax incentives (i.e., tax exemption and tax deduction) for philanthropy activities within education, research and development sectors. However, the donations must be given to institutions to be eligible for such tax incentives, including donations for: 1) Purchasing or constructing building and infrastructures; 2) Purchasing land for the location of building and infrastructures; 3) Procuring facilities and infrastructures in the forms of offices, laboratories and libraries; 4) Purchasing or constructing student’s dorms or residences for teachers; and 5) Constructing sport facilities.
- For more information, see Hukumonline’s article titled: “Pemerintah Siapkan Regulasi Super Tax Deduction untuk Industri”
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