2 years import duty exemption; or directly apply for 4 years for companies using locally-produced machines (min. 30%).
For industries which produces goods and/or services, including:
1. Tourism and culture
2. Public transportation
3. Public health services
Imported machine, goods and raw material are:
30 % of investment value 145 business fields Eligible for tax allowance, expanded from 143 segments in the previous regulation with additional segment: textile industry. Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project location (especially outside Java island). Deduction of net corporate income which amount 30% from total investment, carried over 6 years period (equal to 5% deduction per year).
Tax Allowance Calculation Illustration: PT ABC
Total Investment: US$ 10,000,000
Deduction per year: 5% x US$ 10,000,000 = US$ 500,000
Deduction for 6 years: 6 x US$ 500,000 = US$ 3,000,000
The Minister of Finance (MoF) has issued an updated Tax Holiday policy through Regulation No. 150/PMK.010/2018 on 27 November 2018. This regulation revokes the MoF Regulation No. 35/PMK.010/2018.
The Corporate Income Tax reduction can be given for 5 - 20 fiscal years, based on investment value and eligible for projects that considered strategic for the Indonesian economy.
The 18 eligible pioneer industries are: