A flat corporate income tax rate of 25 per cent is imposed on all Indonesian companies as well as foreign companies operating in Indonesia via a permanent establishment.
Listed companies with at least 40 per cent of their paid-up capital traded on the stock exchange get a five percentage points deduction in their tax rate .Indonesia does use tax incentives to encourage capital investments in particular industry sectors as well as geographic locations. Also, the simplified and expanded tax holiday incentives for new domestic or foreign investment in Indonesia’s “pioneer industries” include a guaranteed 100 per cent tax cut. This means that new businesses that qualify will be exempted from corporate tax for a period of 5 to 20 years, depending on how large their investment is. This includes intangible goods , all manufactured goods, whether produced locally or imported, and services provided outside Indonesia to Indonesian businesses.
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Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »