Indonesia\u2019s Investment Coordinating Body, or BKPM, has issued a new regulation that clarifies that a request by companies to get
\na tax holiday must be processed within 65 working days after it is filed.<\/p>\n
Franky Sibarani, the BKPM chief, said on Friday that the regulation sets out a mechanism for requesting a tax holiday, a
\npostponement of duties to pay tax for a certain period.<\/p>\n
He said in a statement that companies could expect the government to issue a decision either to grant or reject such a request
\nwithin 65 days. The BKPM will coordinate with the Finance Ministry, which is the authority in such matters.<\/p>\n
Lestari Indah, a deputy to the head of the agency, said companies that felt they met the criteria for a tax holiday, as set out
\nin a Finance Ministry regulation issued earlier this year, could obtain a request form from the BKPM's one-stop investment service.<\/p>\n
This request then is taken to a discussion involving officials from the Finance Ministry, the BKPM, industry representatives and
\nother consultants.<\/p>\n
\u201cThe meeting will decide whether to approve or reject the request,\u201d Lestari said.<\/p>\n
Companies that are refused a tax holiday may still be eligible for other taxation incentives from the government, including a
\nreduction in corporate income tax and other incentives.<\/p>\n
Under the Finance Ministry regulation, companies that may apply for a tax holiday are those in the so-called pioneering
\nindustries of upstream metal processing, refining, and organic chemical industry sourcing from oil and gas; industrial
\nmachinery; agricultural manufacturing; forestry and fishery; information, communication and technology; and shipping.<\/p>\n
The company must also commit investment of Rp 1 trillion ($69.7 million), or half that amount if setting up a business in IT and
\ncommunications that brings high technology into the country.<\/p>\n
\u201cWe believe that the new regulation regarding tax holidays can help boost the competitiveness of the investment [climate] in
\nIndonesia,\u201d Lestari said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bkpmrsquos-new-regulation-tax-holiday-must-be-processed-within-65-working-days",
"image": "BKPM.png"
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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