Announcement! Tax Holiday Officially Extended Until 31 December 2025

JAKARTA, DDTCNews - The Ministry of Finance has extended the tax holiday period until 31 December 31, 2025.

The extension of the tax holiday is implemented pursuant to the Minister of Finance Regulation (MoF Reg.) No. 69/2024 which revises MoF Reg. 130/2020.

“The corporate Income Tax reduction...is granted based on the proposal for the granting of corporate Income Tax reduction submitted to the Minister of Finance... that is submitted no later than 31 December 22025,” reads Article 21 of MoF Reg. 130/2020 as amended by MoF Reg. 69/2024, quoted on Sunday (3/11/2024).

To obtain the tax holiday facility, corporate taxpayers must be declared to fulfil the criteria listed in Article 3 paragraph (1) of MoF Reg. 130/2020 as amended by MoF Reg. 69/2024. The fulfilment of the criteria under Article 3 paragraph (1) is determined through the OSS system.

If the OSS system states that a new investment by a corporate taxpayer fulfils the criteria under Article 3 paragraph (1) of MoF Reg. 130/2020 as amended by MoF Reg. 69/2024, the taxpayer may continue the application through the OSS system.

The application is submitted by uploading documents in the form of the softcopy of details of fixed assets in the investment value plan.

After the application is completely received, the application will be submitted by the OSS system to the Minister of Finance as a proposal for granting a tax holiday. The OSS will also notify the taxpayer that the tax holiday application is being processed.

Based on the proposal, the Head of the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM in Indonesian) issues a decision letter on the granting of the tax holiday for and on behalf of the Minister of Finance.

“The decision ... implemented by the Head of the BKPM shall be issued no later than no later than five business days after the proposal for the granting of the Income Tax facility ... is completely and correctly received,” reads Article 11 paragraph (2) of MoF Reg. 130/2020 as amended by MoF Reg. 69/2024.

The tax holiday facility is utilised by the corporate taxpayer starting from the tax year of the start of commercial production. Specifically for taxpayers that receive government assignments, the tax holiday facility is utilised when all new investment plans have been realised.

MoF Reg. 69/2024 has been promulgated as of 9 October 2024 and came into force on the date of promulgation.

In line with this DDTC will also hold an exclusive seminar on the Prospects, Opportunities and Strategies for the Utilisation of Various Tax Incentive Menus in Indonesia on Wednesday, 20 November 2024 at 09.00 to 15.30 WIB at Menara DDTC Jakarta. (rig)