Top! Jokowi Spreads These 9 Tax Incentives for Investors IKN News – 1 hour ago


Jakarta, CNBC Indonesia – The government of President Joko Widodo or Jokowi is providing many incentives in the tax sector to investors in the Indonesian Capital City (IKN).

These various incentives are contained in Government Regulation Number 12 OF 2023 concerning Providing Business Licensing, Ease of Business and Investment Facilities for Business Actors in the Archipelago Capital City.

Expert Staff to the Minister of Finance for Tax Compliance, Yon Arsal, said that the various incentives were provided to increase the attraction for investors to invest in IKN. According to him, the construction and development of IKN certainly requires support from the entire community.


“The government has determined various incentives to be given, both fiscal and non-fiscal incentives, the general rules of which are currently included in PP No.12/2023,” said Yon in the seminar on IKN Investment Opportunities: Completely Discussing VAT Incentives, Income Tax and Customs Facilities for Imported Goods, quoted Monday (4/11/2023).

Yon gave an example of incentives including Income Tax (PPh) Article 21, and Value Added Tax (VAT) not being collected. The incentives provided, he said, also took the form of tax holidays and incentives in the customs sector.

He said that this incentive was not only targeted at large investors, but was also given to MSMEs. According to him, all incentives have taken into account the sustainability aspects of the APBN. He said that the provision of incentives could also be evaluated at a later date.

“We hope that the provision of fiscal incentives will be able to encourage development in IKN so that the main principle that we convey in providing these incentives is that all the tax facilities that we will provide there are absolutely easy and simple,” he said.

In more detail, the Director of Counseling, Services and Public Relations of the Directorate General of Taxes, Dwi Astuti, said that there are 9 incentives prepared by the government in PP 12/2023. The following is the list.

1. Tax holiday with an investment limit of IDR 10 billion for a maximum period of 30 years. Several eligible sectors can be expanded according to the needs of IKN development and development.

2. Vocational superdeduction in the form of a maximum deduction from gross income of 250% (actual costs + additional deduction of a maximum of 150%). The eligible competencies are adjusted to development needs at IKN.

3. R&D superdeduction in the form of a maximum deduction from gross income of 350% (actual costs + additional deduction of a maximum of 250%).

4. Superdeduction contribution in the form of a maximum deduction from gross income of 200% (actual costs + additional deduction of a maximum of 100%). No restrictions can be imposed as long as it does not cause a loss in the year the donation is made.

5. Final Income Tax 0% for MSMEs. Turnover under IDR 50 billion is not taxable and is given to individuals and business entities.

6. Income Tax Article 21 DTP. This incentive applies to all employees domiciled at IKN and there is no income limit.

7. PPh facilities at the financial center. This facility is in the form of a tax holiday for up to 25 years with an exemption percentage of 100% for banking, insurance, both conventional and sharia, 85% for other financial sectors.

8. PPh facilities for moving the head office from abroad. This facility is in the form of a 100% tax holiday for 10 years, and 50% for the following 10 years.

9. VAT and PPnBM. Existing VAT and PPnBM facilities remain valid. The special scheme is a VAT facility that is not levied on the delivery of property, electric vehicles, property rental services, construction services and waste processing services.

[Gambas:Video CNBC]

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