Notice! Government officially extends tax holidays

Jakarta –

The government, through the Ministry of Finance (Kemenkeu), has extended the corporate tax or tax holiday until December 31, 2025. This extension is stated in the Regulation of the Minister of Finance (PMK) Number 69 of 2024 a regarding Amendments to PMK No. 130/PMK.010/2020 regarding the provision of Corporate Income Tax Reduction Facilities.

Investment and Downstream Minister / BKPM CEO Rosan Roeslani said the tax holiday extension had just been approved by Finance Minister Sri Mulyani. He believes that tax holidays play an important role because they can attract incoming investment.

“Because the tax holiday plays a very important role. The share of incoming investment is very, very large, more or less 25%. , which has been implemented in many countries,” said Rosan after a coordination meeting of the Coordinating Ministry of Economy, South Jakarta, Sunday (3/11/2024).

Rosan said more than 100 countries implement a global minimum tax of 15%. If Indonesia does not raise the minimum 15% global tax on foreign companies, he explained that the company’s home country will collect it.

It has also provided information to foreign investors regarding the lowest tax worldwide. Nevertheless, he said that the government also offers several other incentives to foreign companies that want to invest in Indonesia.

“But there’s no need to worry, because we can provide incentives in other forms. Incentives in other forms, to which we have made changes, so we give them in other forms, so that the 15% Tax Holiday is compensated in other forms. ,” he explained.

He confirmed that the lowest tax worldwide only applies to foreign companies. However, domestic companies can still apply for tax holiday incentives that will be extended to next year.

“But for domestic companies that accept tax holidays, you don’t have to worry. Because what is interesting is that the country involved is 15%. ” he explained.

(clay/clay)