Directorate General of Taxation: Government Issuing Regulation of Tax Holiday Soon

Wednesday, September 15, 2010

Tax Holiday for InvestmentDirectorate General of Taxation Mochamad Tjiptardjo revealed that the Ministry of Finance was preparing a tax incentive in the form of tax holiday to attract capital investment in the country.

"The incentives now being discussed are tax holiday. The team has been formed by the Finance Minister, now still in progress," said Tjiptardjo after silahturahmi and gatherings in the Ministry of Finance neighborhood in Jakarta, Tuesday (14 / 9).

Mochamad Tjiptardjo mentioned, in time if the assessment is completed, they will reporting the form of the tax holiday. "This is about the harmonization of the Law on Investment with the Law on Income Tax. What is the real form of the tax holiday, is still be reviewed. The team has been formed," he said.

When asked when the incentive tax holiday can be realized, Tjiptardjo said, ideally, can be given from January 1, 2011. Tjiptardjo said the government is already providing many tax incentives to support local business growth, but only a tax holiday that is still hanging.

"There is only one consistent with the Law on Investment, and only tax holiday is still hanging. The others are available such as tax depreciation rate, restitution is accelerated, and decreasing tariffs," he said.

He mentioned, in Indonesia's Law on Taxation, did not known form of tax holiday incentive. this kind of Incentive is regulated under the Act on Investment so harmonization of regulations is necessarily needed.

Tax holiday is generally a tax exemption for employers to pay within a certain period. Usually the tax holiday granted as a fiscal stimulus to attract investors from abroad to invest.
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