ANNOUNCED AS TEMPORARYNo
Tax or social insurance relief
The Ministry of Industry regulation 1/2018 also amends, compared to previous regulation (see Related State Acts), the sector-specific criteria to qualify for investment-related income tax reductions. Depending on the industry, these criteria range from a minimum investment of 100 billion IDR (ca. 7.3 million USD) to a creation of 100 new jobs to the introduction of state-of-the-art technologies in the new factories. A detailed list of the requirements can be found in the first and second appendix of the regulation.
Given that the additional sector-specific criteria are likely to decrease the eligibility for the income tax reduction, this intervention has been classified as trade-liberalising. Furthermore, it should be stated that every eligible sector is facing additional criteria compared to the previous regulation in place.
The regulation came into force on 12 January 2018.
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