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 insurers and banks operating in Nusantara. They would need to invest before 2035 to qualify for this tax break.
On the Road to a Bustling Business Hub
Nusantara is expected to be complete by 2045, and the incentives will be offered until then. The vision is to build an advanced city that is technologically powered by renewable energy entirely. To date, 20 companies (foreign and local) have expressed interest in investing.
The Government has agreed to bear the people’s income taxes until the end of 2035. Other incentives in the works include a 100% tax holiday for up to 10 years for companies relocating to Nusantara. This includes regional offices or headquarters. Tax breaks are also available for investments worth more than 10 billion rupiah.
Companies will also be eligible for a “super tax deduction”. This would reimburse businesses for any research, educational, or non-profit costs incurred. Import taxes will be waived for companies that plan to expand their industries to the Nusantara region.
Looking to Start a Business in Indonesia?
The Indonesian government’s initiative to offer tax breaks and incentives to companies relocating to Borneo’s Nusantara region is a highly attractive proposition for investors. This move will undoubtedly lead to an influx of foreign direct investment, creating job opportunities, and boosting economic growth in the region.
Thus, if you’re a new investor looking to start a business in Indonesia, Borneo should definitely be a choice to consider. You can contact us if you want to know more about it, or need help with Indonesia company incorporation.