25 May 2018
INDONESIA: Projects with FDI Backing Below US$35 Million Set for 50% CIT Cut
A 50% cut in corporate income tax, over a five-year period, is on offer for all new FDI projects valued in the Rp100 billion (US$7.16 million) to Rp500 billion (US$35.2 million) range. This follows earlier legislation that offered a 100 % CIT exemption for FDI projects valued at Rp500 billion or above.
In the case of this latest incentive scheme, in addition to falling between the specified funding parameters, eligible projects will have to be focussed on one of several priority manufacturing sectors, including semiconductors and IT components; medical devices; industrial machinery/components; auto parts; robotic components; and electrical parts. A formal date for the introduction of the new incentive scheme has yet to be announced.