8 Taxpayers Enjoy Tax Holiday in Six Months, Sri Mulyani Says
Minister of Finance Sri Mulyani Indrawati on Thursday (10/18) unveiled the implementation of Regulation of the Minister of Finance (PMK) Number 35/PMK.010/2018 on Reduction of Corporate Income Tax.
The regulation amends the previous regulations, PMK 130/2011 and PMK 159/2015, and aims to simplify tax holiday process.
“The (tax holiday) facility launched in 2015 cannot be applied (to the corporate). Thus, we begin to think that the policy is not working well enough. Therefore, weve made a radical change (through the PMK 35/2018). The regulation significantly simplifies the process. Directorate General of Taxation will only make the assessment after the corporations run the business,” Sri Mulyani explained.
The aforementioned regulation, she added, has provided a good result since its issuance in April 2018.
“In just six months, eight taxpayers have got the tax holiday. The total investment from the eight taxpayers is Rp.163.3 trillion, which is very significant. This is a very good result,” Sri Mulyani said. For the record, the tax holiday regulated in PMK 35/2018 includes:
- 100% tax holiday without range;
- The higher the investment the longer the tax holiday applies;
- Investment value of Rp500 billion to Rp1 trillion shall get 100% tax holiday for 5 years;
- Investment value of more than Rp1 trillion to Rp5 trillion shall get 100% tax holiday for 7 years;
- Investment value of more than Rp5 billion to Rp15 trillion shall get 100% tax holiday for 10 years;
- Investment value of more than Rp15 trillion to Rp30 trillion shall get 100% tax holiday for 15 years;
- Investment value of more than Rp30 trillion shall get 100% tax holiday for 20 years.
- The cooperation shall get 50% income tax reduction for 2 years after the tax holiday is completed.
- The criteria for the pioneer industry expanded to 17 industries with 153 types of businesses.
(Humas Kemenkeu/EN) (RI/EP/Naster)