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Revised Tax Holiday Regulations More Attractive for Potential Investors

Revised Tax Holiday Regulations


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In early 2018 the Government, through Ministry of Finance PMK No. 35/PMK.010/2018 (PMK 35), issued a revised regulation concerning its Tax Holiday Program.

PMK 35 provides greater convenience and more flexibility for investors to obtain a Tax Holiday, by revising some of the previous requirements such as such as expansion number of pioneer industries that will obtain tax facility, the lower investment capital requirements compared to the previous regulation and tax facility in the form of a 100% reduction from the amount of corporate income tax payable. After the time period expiration of the tax facility, the Taxpayer will be awarded a reduction of Corporate Income Tax of 50% of its Corporate Income Tax liability for the next two fiscal years.

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