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JAKARTA: The government set five business sectors in pioneer industry to receive tax holiday facility for a minimum period of five years as regulated on Minister of Finance Decree, published today.

 

Meanwhile, some 128 businesses in certain areas will get tax allowance as stated in the revision of Government Regulation No.62/2008, which will be legally published in this month. PP No.62/2008 is the first revision of Government Regulation No.1/2007 concerning Income Tax Facilities for Investment Activities in the Line of Business Specific and or Specific Areas.

 

Finance Minister Agus D. W. Martowardojo described the five lines of business entities which will get the tax holiday facility are basic metal industries, petroleum refining industry, organic basic chemicals derived from petroleum and natural gas, machinery industry, renewable resources industry, as well as telecommunications equipment industry.

 

Minister of Finance said the tax holiday can only be utilized by the pioneer industry with a minimum investment value of IDR 1 trillion. The tax holiday facility is also allowed for business activities that are already running for a year before the legalization of the minister decree, as long as the industries have not make a profit or a commercial.

 

To get the facility, the investor or prospective investor who meets the criteria should apply to Coordinating Investment Board (BKPM) and or Ministry of Industry to review the suitability of the criteria with an investment plan that they will execute. (t03/msw)

 

 

 

 

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