ID :
221927
Fri, 01/06/2012 - 06:15
Auther :
Shortlink :
https://oananews.org//node/221927
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New Indonesian Tax Incentives To Boost Investment
By Ahmad Fuad Yahya
JAKARTA, Jan 6 (Bernama) -- The Indonesian government has launched new
incentives in the form of tax allowances covering 129 business sectors in a move
to boost downstream investment.
The sectors -- plantation, mining, real estate, electronics, pharmacy and
food -- are seen as crucial to developing the under-invested downstream
industry.
The tax allowance will reduce taxable income to 30 per cent of the total
investment carried over six years, accelerate depreciation and amortisation,
impose income tax of up to 10 per cent for offshore taxpayers, and carry forward
losses from five to 10 years, The Jakarta Post reported on Friday.
"The impact on investment will be positive. This is a great signal for
businesses to up their activities," Indra Darmawan, director for investment
deregulation at the Investment Coordinating Board (BKPM) told the daily.
The investment board has targeted Rp283.5 trillion in direct investment this
year, up more than 18 per cent from the Rp240 trillion (US$26.66 billion)
targeted for 2011.
Tax allowance is different from the tax holiday, which gives five to 10
years tax breaks in five industrial sectors -- base metal, oil refining,
petrochemicals, renewable energy and telecomunications equipment.
They will enjoy the tax holiday if their investment is worth at least Rp1
trillion.
-- BERNAMA
Malaysia indonesia