• Review of the Extension of Tax Holiday Up To 50 Years

Review of the Extension of Tax Holiday Up To 50 Years

08 August 2018

Regulation of Ministry of Finance Number 35 Year 2018

Review of the Extension of Tax Holiday Up To 50 Years


The reasons behind the review

President Joko Widodo requests Finance Minister Sri Mulyani Indrawati to review the tax holiday policy for up to 50 years. It is believed to invite more investors to invest in Indonesia.

This is related to industrialization-related investments. Where, Head of State wants the strengthening of industrial structure in Indonesia and export must be improved.

The government's commitment is very unanimous about the desire to boost exports and investment.


Things that have been prepared by the Ministry of Finance

Ministry of Finance has prepared a small tax holiday incentive for investment value below IDR 100 billion and labor incentive. So that it can accommodate the needs of small middle-class companies, especially for the substitute of national imports.

There is no new policy by the government to suppress imports in order to maintain the value of the rupiah. However, it is currently necessary for improvements in accordance with government communications with the business world, to ensure that this policy has a positive impact.


Previously stated on the Regulation

Previously, the tax holiday regulation was already regulated in (PMK) Number 35/2018 which regulates the ease of tax deduction facility. In the PMK it is at least regulated that can get a tax holiday is a company that has an investment value of at least IDR 500 billion and the term can be extended to 30 years.

For more information how BDO in Indonesia can help you in planning and navigate this major change, please contact our technical team at: corsec.helpdesk@bdo.co.id


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