Govt To Extend Of Corporate Income Tax Reduction Facility

Thursday, 21 Nov 2024

By reza@insightinnews.com The government has issued Minister of Finance Regulation (PMK) Number 69 of 2024 concerning Amendments to Minister of Finance Regulation Number 130/PMK.010/2020 regarding the Provision of Corporate Income Tax Reduction Facilities. PMK Number 69 of 2024 was officially promulgated on October 9, 2024, and took effect on the same date. Dwi Astuti, the Director of Counseling, Services, and Public Relations, stated that the issuance of this PMK is motivated by the impending expiration of the proposal period for the provision of corporate income tax reduction facilities, which is set to conclude on October 8, 2024, as stipulated in Minister of Finance Regulation Number 130/PMK.010/2020. Therefore, it is necessary to formulate regulations to ensure the continuity of these facilities. Dwi Astuti emphasized the need for adjustments in the administration of tax services to support the implementation of the updated tax administration system and the introduction of global minimum tax policies, which affect the framework for providing tax incentives, including the provision of corporate income tax reduction facilities. "This PMK is issued as an effort to provide legal certainty in order to maintain the investment climate, which is essential for enhancing Indonesia's economic growth, improving services, and facilitating compliance for taxpayers in relation to the implementation of the updated tax administration system, as well as adjusting the provisions for utilizing corporate income tax reduction facilities in anticipation of the global minimum tax policy," Dwi Astuti said. Dwi Astuti stated that this regulation includes adjustments to the criteria for obtaining corporate income tax reduction facilities. The adjustment requires that corporate taxpayers must make new investments that have not previously been subject to any decisions or notifications regarding the provision of investment-based corporate income tax facilities, including decisions related to the granting of corporate income tax reduction facilities as stipulated in government regulations concerning business licensing, ease of doing business, and investment facilities for entrepreneurs in the capital city of Nusantara. "In this regulation, there is an addition of regulatory clauses as a precautionary measure in response to the implementation of global minimum tax policies. The added clause specifies that taxpayers who have received a decision on the utilization of corporate income tax reduction facilities, which remains valid both before and after the enactment of PMK 69/2024, and who fall within the scope of certain taxpayers as defined in the legislation regarding the imposition of global minimum tax on multinational corporate groups in Indonesia, will be subject to an additional domestic minimum tax in accordance with the relevant tax regulations," Dwi Astuti explained. Dwi Astuti stated that this regulation also outlines the extension of the proposal period for the provision of corporate income tax reduction facilities, which is set to remain in effect until December 31, 2025. She urged all corporate taxpayers seeking to benefit from the corporate income tax reduction facilities to refer to this regulation. More detailed information regarding Minister of Finance Regulation Number 69 of 2024, which amends Minister of Finance Regulation Number 130/PMK.010/2020 concerning the provision of corporate income tax reduction facilities, can be accessed and downloaded from the tax.go.id website.

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