Mon, 26 Apr 2010

TEMPO Interactive, Jakarta: The Investment Coordinating Board clarified statement made by Industry Minister MS Hidayat last week that the Finance Department had agreed with the agency to impose tax holiday. Chairman of the board Gita Wiyawan said on Sunday (25/4) the “agreement” informed by Minister MS Hidayat was still at a conceptual stage.

All parties involved in the policy-making are yet to determine the particular sectors and sub-sectors deserve the facility, and whether the draft regulation will stand as a new law or be incorporated in the existing law, the Government Regulation No.62 of 2008 on Income Tax Facility for Capital Investments in Certain Sectors.

The government, Gita said, will include all departents related to the policy including Trade Department and Industry Department. Some of the projected measures in the draft policy were; reduction to 30 percent share from net income, shortened depreciation and amortization, 10 percent income tax on dividends for foreign shareholders, and longer compensation period for losses to between five and ten years.