NewsIncentives for Taxpayers in Indonesia During COVID-19

The Covid-19 Pandemic has significantly affected the economic growth of all countries in the world, including Indonesia. In an effort to maintain economic stability as a result of Covid-19, the government of the Republic of Indonesia through the Minister of Finance of the Republic of Indonesia has issued regulations regarding incentives for Taxpayers during the Covid-19 pandemic.

There are 5 (five) types of incentives for Taxpayers from the government of the Republic of Indonesia, as follows: Incentives from the Income Tax (PPh 21) – a tax levied on salaries, wages, benefits and other types of payments in any form relating to work, position, services, and other activities of individuals as domestic tax subjects; Incentives from Final PPh based on Government Regulation No. 23 of 2018; Incentives from Export and Import Tax (PPh 22) – a form of tax deduction or collection carried out by the Foreign Exchange Bank or the Directorate General of Customs and Excise when a Taxpayer imports goods; Incentives from the Installments of Tax (PPh 25) – a tax paid in installments to ease the burden of Taxpayers; and the last is incentives from Value Added Tax (PPN) – a tax imposed on every process of production and distribution.

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By combining commercial sensibilities and legal expertise, ADCO Law assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo

Steven Winardy

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This publication has been prepared for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.

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Jl. HR. Rasuna Said kav. 62,
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Setiabudi Building 2, 2nd Floor Suite 205C
Jl. HR. Rasuna Said kav. 62, Jakarta 12920 Indonesia