Rabu, November 6, 2024

Tax Holiday Incentives Officially Extended until 31 December 2025

The Director of Counseling, Services and Public Relations at the Directorate-General of Tax, Dwi Astuti (“Director”), has affirmed that through the issuance of Regulation of the Minister of Finance (“Minister”) No. 69 of 2024 (“Regulation 69/2024”) the incentives that are currently in place and that take the form of corporate income tax exemptions (“Tax Holiday”) have now been officially extended until 31 December 2025. Under the previous framework of Regulation of the Minister No. 130/PMK.010/2020 (“Regulation 130/2020”) this Tax Holiday was set to expire on 9 October 2024.
According to the Director, the extension of the Tax Holiday via the issuance of Regulation 69/2024 aims to further boost economic growth within Indonesia, particularly in relation to pioneering industries. In this regard, the new framework of Regulation 69/2024 lists a total of 18 industries that have now been classified as pioneering industries, including: 1) Metal industries; 2) Oil-and-gas refineries; 3) Manufacturers of motor vehicles; 4) Providers of economic infrastructure; 5) Digital economy players; and so forth.
In addition to the above matters, Regulation 69/2024 also addresses the imposition of a minimum global tax. In this regard, any corporate taxpayers that fall under the scope of the minimum global tax will be subject to the imposition of an additional domestic tax. The Director has affirmed that this additional domestic tax is being imposed in order to ensure that all multinational companies operating within Indonesia settle their tax obligations and comply with the applicable standards on minimum global taxes. _(ANT)

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*Syarat dan ketentuan berlaku

The Director of Counseling, Services and Public Relations at the Directorate-General of Tax, Dwi Astuti (“Director”), has affirmed that through the issuance of Regulation of the Minister of Finance (“Minister”) No. 69 of 2024 (“Regulation 69/2024”) the incentives that are currently in place and that take the form of corporate income tax exemptions (“Tax Holiday”) have now been officially extended until 31 December 2025. Under the previous framework of Regulation of the Minister No. 130/PMK.010/2020 (“Regulation 130/2020”) this Tax Holiday was set to expire on 9 October 2024.
According to the Director, the extension of the Tax Holiday via the issuance of Regulation 69/2024 aims to further boost economic growth within Indonesia, particularly in relation to pioneering industries. In this regard, the new framework of Regulation 69/2024 lists a total of 18 industries that have now been classified as pioneering industries, including: 1) Metal industries; 2) Oil-and-gas refineries; 3) Manufacturers of motor vehicles; 4) Providers of economic infrastructure; 5) Digital economy players; and so forth.
In addition to the above matters, Regulation 69/2024 also addresses the imposition of a minimum global tax. In this regard, any corporate taxpayers that fall under the scope of the minimum global tax will be subject to the imposition of an additional domestic tax. The Director has affirmed that this additional domestic tax is being imposed in order to ensure that all multinational companies operating within Indonesia settle their tax obligations and comply with the applicable standards on minimum global taxes. _(ANT)

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