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Jakarta Post

Tax office to issue regulation on tax incentive within days

  • The Jakarta Post

JAKARTA   /   Thu, February 5 2009   /  11:50 am

The tax office is moving ahead with its plan to provide incentives for companies that cover, partly or entirely, their workers’ individual tax liabilities, and could issue a ministerial decree on the matter as early as this week. Unlike in many countries, most companies in Indonesia cover their workers’ income tax.
Darmin Nasution, the Finance Ministry’s director general for taxation, said the regulation regarding the incentives, which was formulated to ease the burden on companies amid the ongoing financial crisis, would be introduced on Feb. 10 at the latest.
“We are running simulations to calculate tax incentives needed in each sector so that we know the proper allocations,” Darmin said following a hearing with the House of Representatives’ Commission XI on financial affairs.
The incentive will form part of the government’s fiscal ...