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  • Requirement to Report on Realization Amount Obligation for Tax Allowance Recipients
Article:

Requirement to Report on Realization Amount Obligation for Tax Allowance Recipients

03 March 2020

Based on the Regulation of the Minister of Finance Number 11/PMK.010/2020 stipulated by the Minister of Finance on 11 February 2020 regarding Implementation of Government Regulation Number 78 Year 2019 regarding Income Tax Facility for Investment in Certain Business Fields and/or in Certain Regions.

  1. The Directorate General of Taxation (DGT) of the Ministry of Finance requires business fields granted with income tax facility (tax allowance) to submit reports on the amount of investment realization and production realization.
  2. The Director of Public Counseling, Services and Relations of DGT stated that the report is submitted annually no later than 30 days after the end of the tax year.

The determination for the suitability of the fulfillment of business fields, investment destination areas, criteria, and requirements for obtaining tax allowance is carried out through an electronic integrated licensing system (OSS).

Application for the facility through OSS must be made prior to the commercial production of the relevant company by attaching a digital copy of the shareholders' fiscal statements and a digital copy of the details of fixed assets in the investment plan value.