Incentives For PPh For The Entertainment Industry Agency Have Not Been Published, This Is What The Ministry Of Finance Said

Rupiah (Photo: Antara)

Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu), Febrio Kacaribu, said that the incentives for the corporate income tax for the entertainment industry are still under study. The news of this incentive emerged after there were objections from several entrepreneurs regarding the entertainment tax rate of 40 percent to 75 percent.

"That's not yet. We'll see that and we'll just have to wait." Febrio told the media crew, Jakarta, Monday, January 29, 2024.

Febrio said that his party was still reviewing and communicating incentives with related ministries and institutions. So he could not confirm when the incentive policy would be completed.

"Not yet (there is a target)" he said.

In addition, Febrio said that he could not confirm the difficulty of discussing the incentives. In addition, he is also reluctant to explain in detail which sectors will receive corporate income tax incentives.

"Not yet. Later, yes," he said.

For information, the issuance of Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD) has become a polemic in the community, especially for entertainment entrepreneurs, objecting to the determination of tariffs of 40 percent to 75 percent for Certain Goods and Services Taxes (PBJT) contained in Article 55 of the HKPD Law.

Responding to the objection, the government has prepared incentives for corporate income tax for entertainment industry operators. Coordinating Minister for the Economy Airlangga Hartarto said that the tourism sector will be given in the form of tax reduction in the form of providing government-borne facilities (DTP) of 10 percent of the corporate income tax, so that the amount of corporate income tax of 22 percent will be 12 percent.

"What the President is considering is asking to be reviewed for a 10 percent corporate income tax incentive," said Airlangga after a meeting with President Joko Widodo (Jokowi) Friday, January 19, 2024.

Airlangga hopes that this circular can strengthen policies taken by the government as well as provide explanations to business actors and the people in the regions.

"So a circular letter with the Minister of Finance and the Minister of Home Affairs will explain this more because in the law it is discretionary, so we certainly don't want moral hazard, so it must be protected by a circular," he said.