FAQ (Frequently Asked Questions)

The Indonesian government has implemented a tax incentive program called “Tax Holiday” with the following requirements:
CONDITIONS FOR REGISTERING THE TAX HOLIDAY FACILITY

• Meets the category of industry pioneer*
• Industry with wide interdependency
• Provides added value and high externality
• Introduces new technology
• Posseses strategic value for the national economy
• A minimum investment value of Rp 100 billion
• Possesses Indonesian legal entity status
• Investment that has not been issued a decision on granting or notification of tax holiday refusal
• Complies with provisions based on the ratio between debt and capital in the context of calculating income tax.

TAX HOLIDAY FACILITIES*

• 100% reduction from the amount of corporate income tax payable for new investments with a minimum of IDR 500 billion.
• 50% reduction from the amount of corporate income tax payable for new investments of IDR 100 billion – < IDR 500 billion.
• The tax reduction period of 5 years for new investments is IDR 500 billion – < IDR 1 trillion.
• The tax reduction period of 7 years for new investments is IDR 1 trillion – < IDR 5 trillion.
• The tax reduction period of 10 years for new investments is IDR 5 trillion – < IDR 15 trillion.
• The tax reduction period of 15 years for new investments is IDR 15 trillion – < IDR 30 trillion.
• The tax reduction period of 20 years for new investments is at least IDR 30 trillion.

* After the tax holiday period ends, Taxpayers are given additional Corporate Income Tax reductions: 50% of the income tax payable over the next 2 years for a Rp 500 billion minimum investment and 25% of the income tax payable over the next 2 years for a minimum of Rp 100 billion – <Rp 500 billion investment.