Indonesia Extending Tax Incentives to Additional Industries

April 20, 2020, 2:09 PM

Indonesia is extending tax support previously only available to manufacturers to 11 further sectors, Director General of Taxes Suryo Utomo said on Monday.

The expansion of the tax breaks is aimed at alleviating the impact of the COVID-19 pandemic on the economy, the Finance Ministry said in a statement.

The tax incentives now available to the electricity, oil and gas, food (such as livestock, plantations and horticulture), mining (including minerals and coal), retail, forestry, tourism, telecommunications, logistics, construction, and transportation sectors. They include:

• A 30% reduction in income tax.

• Exemption from import duties.

• Faster payment of value-added tax refunds, up to a limit of 5 billion rupiah ($320,000)

Check out Bloomberg Tax’s country-by-country roadmaps covering direct and indirect tax developments.

To contact the reporter on this story: Kazuhiko Shimizu in Bangkok at correspondents@bloomberglaw.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Joe Stanley-Smith at jstanleysmith@bloombergtax.com

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