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64 companies granted tax incentives: Official
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The head of the Industry Ministry’s Industrial Research and Development Agency, Ngakan Timur Antara. (Antara/File)
T
he government has granted tax incentives to 64 companies since a revised regulation on fiscal incentives was issued in April, an official has said.
“Sixty-four companies have got tax allowances. More investors have submitted documents,” said the head of the Industry Ministry’s Industrial Research and Development Agency, Ngakan Timur Antara, in Jakarta on Thursday as reported by kontan.com.
The government revised a Finance Ministry regulation on tax holidays and tax allowances to simplify the process of obtaining incentives as part of efforts to boost investment.
Ngakan said under the revised regulation, companies operating in more than 100 business sectors could apply for tax incentives.
“Meanwhile, under the old regulation, only 17 business sectors were eligible for incentives. But the number has been expanded to more than 100 sectors,” said the official, adding that incentives were offered to those who invested at least Rp 500 billion (US$35.9 million).
Under the new regulation, investors both new and those wanting to expand their business will be eligible for incentives.
For a tax holiday, investors will automatically get a 100 percent tax holiday if their documents meet the requirements, while in the past, a tax holiday was in a range of 10 to 100 percent.
Under the revised regulation, the length of the tax holiday depends on the amount of investment. As an example, investors that invest Rp 500 million to Rp 1 trillion will get a five-year tax holiday, while those who invest Rp 30 trillion will get a 20-year tax holiday. (bbn)
