27 April 2018
INDONESIA: Government Moves to Streamline FDI Tax Exemption Procedures
FDI-backed businesses looking to take advantage of the country’s corporate income tax (CIT) exemption incentives should find things a little easier in future, with the application process cut from nine steps to just two. Under these new streamlined procedures, companies can apply for an exemption to the country’s Investment Coordinating Board (BKPM) either when initially seeking a business permit or within a year of registering their capital investment. The Ministry of Finance is then obliged to inform the applicant of the outcome within five working days.
In other developments, the BKPM is said to be considering introducing a separate tax incentive scheme for FDI projects that fall below the current Rp500 billion threshold for CIT exemption.