Getting To Know Tax Holiday, Policy To Attract Investors

YOGYAKARTA - The application of tax holidays in Indonesia is said to have an important role in the entry of investment in Indonesia. Even though they have a big role, not many people know what tax holidays are. People know tax holidays as tax holidays. To get complete information, see the following explanation.

Reporting from tax.go.id, tax holidays are policies made by the government in the form of exemption or tax reduction. This policy is only given to certain sectors and in certain periods of time. Usually, this policy will be implemented in the strategic sector or vital industries that have a role for the development of the country's economy.

Not without reason, the government has launched a tax holiday policy. The hope is that this policy will be able to encourage investment in certain sectors. In addition, it is also hoped that it will be able to grow the economy to the emergence of new jobs.

As is known, the tax leave policy in Indonesia came into effect on October 9, 2020. Since then the government has continued to improve its tax holiday policy in order to attract investment interest. In this policy, tax holidays can be utilized by companies that have just been established.

Later the company will receive an income tax payment exemption facility (PPh), or it could be in the form of reducing the corporate income tax rate for a certain period of time.

The reduction in corporate income tax itself has two criteria, namely a 100 percent reduction from the amount of corporate income tax owed for new investment. The least required value is IDR 500 billion.

In addition, there is also a reduction of 50 percent of the amount of corporate income tax owed for new investment, but with a value of at least Rp. 100 billion and a maximum of less than Rp. 500 billion.

However, the 50% reduction in corporate income tax will be given within a five-year tax period. Meanwhile, a 100% reduction in corporate income tax will be given to entrepreneurs within the following period.

Tax holidays can be obtained as long as they meet the predetermined requirements. The following are the requirements for obtaining tax leave from the government.

Apart from knowing Tax Holiday, you can get interesting information by visiting VOI.id.