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INDONESIA: Corporate Income Tax Rate Cut from 1% to 0.5% for SMEs

The annual preferential corporate income tax (CIT) rate for small and medium enterprises (SMEs) in Indonesia has been cut from 1% to 0.5%. To be eligible for the preferential CIT rate, a company’s annual turnover should not exceed Rupiah 4.8 billion (US$349,150). The CIT reduction comes as part of a wider government bid to give an extra boost to the country’s SME sector.

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