Tax allowance is a government policy to provide tax relief in the form of a certain reduction in the income tax of a business. The government has several times provided tax breaks for companies that meet the requirements. The discount can reach 30% of the tax value that should be.
Investment is one of the main keys that help the development of the economic sector. The Indonesian government plans to provide a tax allowance for investments below Rp 500 billion to encourage the development of medium-sized enterprises. This plan will provide great opportunities for the economic sector.
To be able to apply for a tax allowance, the applicant must meet high-level criteria, namely high investment value for export purposes, high employment, or high local content.
Based on Government Regulation Number 78 of 2019 and Regulation of the Minister of Finance of the Republic of Indonesia Number 11/PMK.010/2020 jo. Regulation of the Minister of Finance of the Republic of Indonesia Number 96/PMK.010/2020, Business Actors Conducting Investment in Main Business Activities as listed in the Attachment to Government Regulation Number 78 of 2019; and meets certain criteria and requirements, can be given Income Tax facilities. The Business Sector in the Industry sector also refers to the Regulation of the Minister of Industry of the Republic of Indonesia Number 47 of 2019.
Source: www. oss.go.id