Indonesia: Government revises tax incentive regulation

• Feb 01, 2018

The government is revising a regulation on tax holidays and tax allowances to simplify the procedures to obtain such facilities in hopes of garnering interest from businesspeople.

Industry Minister Airlangga Hartarto blamed complicated procedures for the reluctance of businesspeople to apply for the facilities. “Obtaining the incentives is not simple,” said Airlangga in Jakarta on Wednesday as quoted by kontan.co.id.

The Directorate General of Taxation said nine taxpayers had received tax allowances, while none had obtained tax holidays, last year.

Airlangga explained that to obtain a tax holiday, a taxpayer must apply for one with the tax office and their application would then be scrutinized by the Finance Ministry before it was reviewed by the verification committee.

“There is no guarantee that their application will be accepted,” he added.

The revised draft regulation to simplify procedures is being discussed at the ministerial level, he added.

Investment Coordinating Board (BKPM) deputy for investment supervision Azhar Lubis hopes the regulation is revised.

“Businesspeople want to know if their application will be accepted or not,” he added. (bbn)

Source: http://www.thejakartapost.com/news/2018/02/01/government-revises-tax-incentive-regulation.html