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INDONESIA: FDI Tax Holiday Scheme Extended to All Business Sectors

The country’s FDI-related tax holiday programme is set to be extended to every business sector. At present, depending on project value, up to 100% corporate income tax exemption is on offer to FDI-funded businesses for periods ranging from 5 to 20 years, but only in sectors the government has deemed priorities.

In March this year, eligibility for the programme was expanded from 8 priority sectors to 17, with the overall value of any FDI-funded project deemed to be the deciding factor in the award of any such entitlement. This latest widening of the parameters has, however, been welcomed as something of a shot in the arm for the domestic investment environment.

Content provided by Picture: HKTDC Research
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