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INDONESIA: First Details of Revised FDI Incentive Regime Emerge

The first details of the planned overhaul of the country’s FDI-related incentive schemes have emerged, with news that the number of business sectors eligible for tax allowances (including corporate income tax (CIT) deductions) is set to be increased from 145 to at least 165. In other expected developments, revisions are to be made to the minimum investment required for FDI-backed businesses to be entitled to tax holidays, while CIT deductions for SMEs and tax incentives for R&D-led companies are also likely to be on offer.

The review was triggered by concerns that the country’s incentive regime was too complex and lacked relevance in the current commercial climate. The new slate of incentives is expected to be officially unveiled within the next two months.

For further details, see INDONESIA: Major Overhaul of Investment Incentives Looms.

Content provided by Picture: HKTDC Research
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