Labor

Tax incentives provided by the government to industries involved in vocational education programs (including innovation-generating research and development activities)

Finance Minister Regulation No. 128/PMK.010/2019

Further regulates regarding the:

1. 200% maximum tax deduction
2. Categories which obtain deduction
3. Types of intern or learning activities
4. Participants of field practice or internship
5. Technique of tax deduction

In Government Regulation No. 45 Year 2018, there are two points of incentive:

Article 29B section (1) reads: Domestic corporate Taxpayer who organizes field practice, internship, and/or learning activities in relation to training and developing specific competency based human resources could be granted a gross income deduction of 200% (two hundred percent) maximum from the total expense incurred in field practice, internship, and/or learning activities.

Article 29C section (1) which reads: Domestic corporate taxpayers carrying out research and development activities in Indonesia could be granted a gross income deduction of 300% (three hundred percent) maximum of the total cost incurred for certain research and development activities charged within a certain period in Indonesia.

The ministry of industry has stated that export oriented companies will obtain income tax cut.

Tax cut will also apply to companies which perform import substitution. The tax cut is granted in the form of tax holiday (tax incentive which applies to newly established companies to have the liberty to pay their corporate income taxes within a certain period of time) and tax allowance (tax reduction calculated based on the size of the total amount of investment).

Source: https://www.online-pajak.com/tentang-pph-final/super-deduction-tax-indonesia