Submission for Reduction Facility of Institutional Income Tax Can be Done Through PTSP Office: Finance Minister
Date 29 Agustus 2015
Minister of Finance Bambang Brodjonegoro said that the proposal for tax holiday facility in the form of Reduction Facility for Institutional Income Tax as stipulated in the Regulation of Minister of Finance (PMK) Number 159/PMK.010/2015 could be done through a One-Stop Integrated Service (PTSP) office.
The process is done through the Investment Coordinating Board (BKPM) that is PTSP, Bambang said during the press conference at Djuanda Hall of the Ministry of Finance in Jakarta, on Thursday (27/8) afternoon.
The statement delivered by Minister of Finance Bambang Brodjonegoro was related to the publication of PMK Number 159/PMK.010/2015 on the Provision of Reduction Facility for Institutional Income Tax on 4 August 2015.
Under the PMK, it is mentioned that the income tax reduction is given a maximum of 100% reduction and a minimum of 10 percent reduction of the total of the Income Tax of the Indebted Institution.
The amount of reduction for Institutional Income Tax is given with the same percentage every year within the maximum period of 15 years of Tax and the minimum period of 5 years of Tax, which is counted since the commencement of the production commercially.
However, the PMK gives authority to Minister of Finance to give Reduction Facility for the Institutional Income Tax with the maximum period of 20 years by considering the importance of maintaining competitiveness of national industries and the strategic value of a certain business activity.
According to the PMK, taxpayerswho are given reduction facility for Institutional Income Tax are those who meet the criteria, namely: a. a new taxpayer, b. a pioneer industry, c. having a plan for a new capital investment which has been legalized by an authorized institution with minimum capital of Rp 1 trillion, d. giving a statement of capability to place funds in Indonesian Bankswith a minimum 10% of the total of the capital investment plan as mentioned before, and e. the status as Indonesian legal entity which is legalized since or after 15 August 2015.
The pioneer industries as mentioned before are: a. upstream metal industry; b. petroleum refining industry; c. oil and gas source-based organic chemicals industry; d. machinery industry which produces industrial machine; e. processing industry based product of agriculture, forestry, and fishery; f. telecommunication, information and communication industry; g. transport and marine industry; h. processing industry which is a major industry in Special Economic Zone (KEK); and/or i. economic industry exclude the industries which use Government Cooperation and Business Entity (KPBU).
Minister of Finance Bambang Brodjonegoro also explained that verification committee would establish the company, which proposed a request for tax holiday.
There will be a time limit. It gives a certainty whether the proposal is accepted or rejected. Now, there is no consultation to the President. So, after the proposal is received by BKPM, it is later given to the verification committee, Minister of Finance noted.
Furthermore, he said that this committee consists of a team from the Ministry of Finance, namely Taxation Directorate General and Fiscal Policy Agency, a team from the Ministry of Industry, BKPM, and Coordinating Ministry for the Economy.
There will be a recommendation from the verification committee for Minister of Finance. If I agree with the decision, I will issue a decree of the Minister of Finance, he said.
In the meantime, Minister of Industry Saleh Husin welcomed the decision made by Minister of Finance Bambang Brodjonegoro Saleh hopes that tax holiday facility will attract more investors.
Through the new PMK, we can see that the requirement and the procedure are easier. We hope that our purpose to attract more investors to Indonesia can be achieved, Saleh said. (Humas kemenkeu/ES) (Juli/Yu/Ers-Naster/Sy)