Entrepreneurs Encouraged to Apply for Tax Holidays

Eko Nordiansyah    •    18 Oktober 2018 17:54 WIB
indonesian economy (en)
Entrepreneurs Encouraged to Apply for Tax Holidays
Finance Minister Sri Mulyani Indrawati (Photo:MI)

Jakarta: Finance Minister Sri Mulyani Indrawati has encouraged companies and entrepreneurs to apply for tax cuts or tax holidays.

"From 2011 until 2015, the government only rewarded tax holidays to five taxpayers," the former World Bank managing director told reporters on Thursday.

"In the past six months, the government has rewarded tax holidays to eight taxpayers," she added.

According to the Finance Ministry No.35/2018, an invesment of Rp500 billion-Rp1 trillion will get a 100 percent income tax cut for five years. An investment of Rp1 trillion-Rp5trillion will get a 100 percent income tax cut for seven years.

In addition, an investment of Rp5 trillion-Rp15 trillion will get a 100 percent income tax cut for ten years. An investment of Rp15 trillion-Rp30 trillion will get a 100 percent income tax for 15 years. An investment of more than Rp30 trillion will get a tax holiday for 20 years.

"All of them will get a 50 percent income tax cut for additional two years," the influential economist said.

"We have reduced the investment threshold to only Rp500 billion without exception," she added.



(WAH)