Indonesia’s Minister of Investment and Downstreaming, Rosan Roeslani, has emphasized the significant contribution of the tax holiday, which accounts for around 25 percent of the total incoming investment, according to reporting from Antara News.
“The tax holiday plays an important role; its proportion is quite large in terms of incoming investment, more or less above 25 percent,” he said in Jakarta on Sunday (3/11/24.)
The tax holiday policy has been extended by Minister of Finance Sri Mulyani through Regulation Number 69/2024, which amends the previous Regulation Number 130/2020 regarding corporate income tax reduction facilities, says Antara News.
However, under the extended regulation, the tax holiday does not apply to foreign companies due to the implementation of a 15 percent global minimum tax.
Roeslani said that approximately 100 countries have implemented the 15 percent tax. If Indonesia does not collect this minimum tax, the country of origin of the foreign company will impose it.
While discussing the global minimum tax with potential foreign investors, he said that the Indonesian government is currently considering providing compensation for the 15 percent tax in the form of other incentives.
According to him, this effort is part of the government’s strategy to encourage local companies to invest in Indonesia, says Antara News.
Source: Antara News
Stock image by Steve Buissinne from Pixabay
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