Indonesia Extends Tax Holidays Until 2025 to Attract Foreign Investors The Indonesian government recently announced a tax extension holiday to encourage foreign investment in Indonesia until 31 December 2025. Announced by the Investment Minister of Indonesia, the decision stood out as many governments worldwide are implementing the Global Minimum Tax (GMT) of 15 per cent.…
Crude Palm Oil Export Tax Threshold Reduced So Indonesia Can Hit Up to $5 Billion in Revenue Indonesia is targeting up to $5 billion in revenue from furniture exports this year by reducing the export threshold on crude palm oil. Certification will be given by the Government to ensure the furniture industry is using materials…
Companies Relocating to Borneo to Get Full Tax Rebates To entice business to relocate to Borneo, Indonesia is introducing several new tax breaks. These are part of the Government’s 600 trillion rupiah (S$52.8 billion) plan to turn Borneo into a thriving business hub. There will be no income tax for up to 25 years for…
Increase in Indonesia VAT Rate to 11% Effective 1 April 2022 The Indonesian Government plans to increase the VAT rate in the country to 11% effective 1 April 2022. The increase is in accordance with the Harmonisation of Tax Regulations, Law Number 7. The 11% VAT rate increase is reflective of the Indonesian Government’s efforts to…
Indonesia Collects $20.9m Digital Tax From 22 Digital Technology Companies as of October Under the recently-changed digital tax, Indonesia has garnered Rp 297 billion (US$20.9 million) from 22 digital technology enterprises, according to the Finance Ministry’s Taxation Directorate General on Monday. Aiming to implement the taxation to digital business movements in the country, the tax…
Indonesia to Raise the Cigarette Excise Tax by 12.5 Percent for 2021 Indonesia’s state government has announced its plans to raise the minimum price of cigarettes by 12.5 % in 2021, said a finance ministry spokesperson in an effort to reduce smoking rates. The Finance Minister clarified that the government had attempted to attain a…
In Pandemic, Indonesia Introduces Tax Policy on Digital Goods and Services With the public shifting to the online world, the Indonesian government found it necessary to implement tax policy on digital goods and services. The taxation of the so-called digital economy has been among the top agendas of many countries. Governments are doing so to…
IMF Calls for Broad-based Tax Reform to Support the Indonesian Economy The International Monetary Fund (IMF) is encouraging the Indonesian government to implement a broad-based tax reform as a means of improving its revenue as the economy slows down due to the coronavirus pandemic. In an interview with The Jakarta Post, IMF mission chief for…
Indonesia to Introduce VAT on Imported Digital Products August 2020 New Regulation to Take Place from August 2020 Indonesia will introduce Value Added Tax (VAT) on imported digital products beginning in August 2020. This will be applicable to all foreign businesses and companies. If you sell digital products either through electronic systems or online,…
