Government Affirms OSS as Channel for Tax Incentive Applications Under PP 28/2025
JAKARTA, DDTCNews – Through Government Regulation (PP) 28/2025, the Government has affirmed the role of the Online Single Submission (OSS) system as a channel for business operators to apply for tax incentives.
Under Article 188 paragraph (3) of PP 28/2025, the investment facilities subsystem is stipulated as one of seven subsystems within the OSS framework. The investment facilities subsystem can be accessed using authorised credentials.
"The investment facilities subsystem as referred to in Article 188 paragraph (3) letter d can be accessed using authorised credentials," reads Article 235 paragraph (1) of PP 28/2025, as quoted on Thursday (19/6/2025).
Features available within the investment facilities subsystem include:
- Applications for import duty exemptions on machinery, goods, and materials for industrial development or expansion within the framework of capital investment;
- Applications for import duty exemptions on capital goods for the development or expansion of public electricity generation industries;
- Applications for import duty exemptions or reductions on imported goods under contracts of work or coal mining exploitation agreements;
- Applications for corporate income tax reduction facilities (tax holiday);
- Applications for income tax facilities for capital investment in specific business sectors and/or specific regions (tax allowance);
- Applications for gross income reductions for organising practical work activities, apprenticeships, and/or competency-based human resource development programmes (super tax deduction for vocational training);
- Applications for gross income reductions for specific research and development activities in Indonesia (super tax deduction for R&D); and/or
- Net income reduction facilities for new capital investment or business expansion in specific labour-intensive industrial sectors (investment allowance).
The provisions for submitting tax incentive applications through OSS have in fact already been regulated under various Minister of Finance Regulations (PMK) serving as the legal basis for granting each type of incentive. For example, procedures for submitting tax holiday applications through OSS are contained in PMK 130/2020 as amended by PMK 69/2024 concerning the Granting of Corporate Income Tax Reduction Facilities.
OSS is an integrated electronic system managed and operated for the administration of risk-based business licensing. The system also encompasses subsystems for information services, basic requirements, business licensing, partnerships, and supervision.
OSS is mandatory for all agencies and entities, ranging from ministries and government institutions, regional governments, and special economic zone administrators, to the Batam Enterprise Agency and business operators.
Under Article 188 paragraph (3) of PP 28/2025, the investment facilities subsystem is stipulated as one of seven subsystems within the OSS framework. The investment facilities subsystem can be accessed using authorised credentials.
"The investment facilities subsystem as referred to in Article 188 paragraph (3) letter d can be accessed using authorised credentials," reads Article 235 paragraph (1) of PP 28/2025, as quoted on Thursday (19/6/2025).
Features available within the investment facilities subsystem include:
- Applications for import duty exemptions on machinery, goods, and materials for industrial development or expansion within the framework of capital investment;
- Applications for import duty exemptions on capital goods for the development or expansion of public electricity generation industries;
- Applications for import duty exemptions or reductions on imported goods under contracts of work or coal mining exploitation agreements;
- Applications for corporate income tax reduction facilities (tax holiday);
- Applications for income tax facilities for capital investment in specific business sectors and/or specific regions (tax allowance);
- Applications for gross income reductions for organising practical work activities, apprenticeships, and/or competency-based human resource development programmes (super tax deduction for vocational training);
- Applications for gross income reductions for specific research and development activities in Indonesia (super tax deduction for R&D); and/or
- Net income reduction facilities for new capital investment or business expansion in specific labour-intensive industrial sectors (investment allowance).
The provisions for submitting tax incentive applications through OSS have in fact already been regulated under various Minister of Finance Regulations (PMK) serving as the legal basis for granting each type of incentive. For example, procedures for submitting tax holiday applications through OSS are contained in PMK 130/2020 as amended by PMK 69/2024 concerning the Granting of Corporate Income Tax Reduction Facilities.
OSS is an integrated electronic system managed and operated for the administration of risk-based business licensing. The system also encompasses subsystems for information services, basic requirements, business licensing, partnerships, and supervision.
OSS is mandatory for all agencies and entities, ranging from ministries and government institutions, regional governments, and special economic zone administrators, to the Batam Enterprise Agency and business operators.