Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Government issues revised regulation on tax holidays

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, April 23, 2018   /   06:55 pm
Government issues revised regulation on tax holidays Investment Coordinating Board (BKPM) head Thomas Lembong. (JP/Anton Hermansyah)

The Indonesian government has issued a revision of the tax holiday regulation to simplify the process for granting the fiscal incentive, Investment Coordinating Board (BKPM) head Thomas Lembong said in Jakarta on Monday.

The new tax holiday scheme is stipulated in Finance Ministerial Regulation No. 35/2018 on corporate income tax cut or tax holidays.

With the new regulation, the government has cut the steps for applying for a tax holiday from nine steps to only two steps.

Thomas said investors could begin submitting their tax holiday applications to the BKPM office.

He added, however, that the Finance Ministry would decide the number of years a tax holiday would be granted for.

“The new regulation also gives stronger legal certainty [for investors],” Thomas said after attending a coordination meeting at the Office of the Coordinating Economic Minister, as reported by

Under the new regulation, investors will receive a 100 percent income tax cut from the government, a change from the previous regulation in which tax cuts ranged from 10 percent, 70 percent to 100 percent.

The investment threshold for investors to apply for a tax holiday is Rp 500 billion (US$35.98 million).

Previously, Robert Pakpahan, the Finance Ministry’s director general of taxation, said the new regulation included a transitional period of two years during which investors would only receive a 50-percent income tax cut. “After that period, they will get a 100-percent income tax cut,” he added. (bbn)