11 Aug 2016
INDONESIA: 17% CIT Mooted in Bid to Boost Competitiveness with Singapore
President Widodo of Indonesia is reported as considering a reduction of its corporate income tax (CIT) rate from 25% to 17%. The move would be aimed at ensuring the country can compete effectively with Singapore – which maintains a 17% rate – in terms of attracting and retaining investment.
At this stage, with the mooted cut solely cited as a possibility, the likelihood of its implementation or any possible timescale remains largely speculative. Previously, however, it has been suggested that the country could implement a staged reduction, possibly dropping to 20% before finally settling at around 17%. For more details, see Indonesia Looks to Cut Corporate Tax Rate to 20%.