Agency has yet to approve tax holiday requests

Thu, 11/17/2011 - 15:36

Several investors have expressed interest and applied for tax holiday facility in Indonesia since it was launched in August by the Ministry of Finance, but not a single proposal has been approved by the ministry’s Fiscal Policy Agency (BKF), a senior tax official said.

“The tax holiday facility has been introduced, and several companies have expressed interest and their proposals are being verified. So none has been approved yet,” said Director for Tax Regulation at the Directorate General of Taxation, Syarifuddin Alsjah said on Thursday.

He said, however, that the agency has approved many requests for tax allowance facility, which has been introduced since 2007.

The government has introduced 5-10 years tax holiday facility for investors in five economic sectors including oil refinery, basic chemical industry, machinery industry, renewable resources industry, and telecommunications industry.  Investors are required to among others invest at least US$1 million to be eligible for the tax holiday facility.

Proposals must be submitted to either the Ministry of Industry or the Investment Coordinating Board (BKPM), before put forward to the Ministry of Finance’s Fiscal Policy Agency for further verification and approval. 

Some investors planning to enter the downstream palm oil industry at home have previously expressed interest to obtain the tax holiday facility. (rei)



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