Sri Mulyani Officially Issues Investors' Easy Rules To Invest In IKN

Minister of Finance Sri Mulyani (Photo; Doc. Antara)

JAKARTA - The Minister of Finance (Menkeu) officially signed Minister of Finance Regulation (PMK) Number 28 of 2024 concerning Tax and Customs Facilities in the Capital City of the Archipelago (IKN). In it there is a discussion about various tax incentives to customs for potential investors at IKN.

The regulation was signed by Minister of Finance Sri Mulyani on April 29, 2024 and is a derivative rule of Government Regulation (PP) Number 12 of 2023.

The regulations issued provide facilities for the IKN area and partner areas. The facilities include Income Tax (PPh); Value Added Tax (VAT) or Sales Tax on Luxury Goods; as well as customs facilities.

"Income tax is income tax as referred to in the Income Tax Law," reads the regulation, quoted Monday, May 27.

As for Article 2 Paragraph (2), describe the PPh facilities provided at IKN. There are at least 9 types of facilities provided by Sri Mulyani.

The nine facilities include:

a. reduction of agency income tax for taxpayers of domestic agencies;

b. Income tax on financial sector activities at the Financial Center;

c. reduction of the agency's Income Tax on the establishment and/or relocation of the head office and/or regional office;

d. reduce Gross Income for the implementation of practical work, apprenticeship, and/or learning activities in the context of fostering and developing certain competencies-based human resources;

e. reducing Gross Income from certain Research and Development activities;

f. reduce Gross Income on donations and/or costs for the construction of public facilities, social facilities, and/or other non-profit facilities;

g. Income tax Article 21 is borne by the Government and is final;

h. The final income tax is 0% (zero percent) on income from the circulation of certain gross businesses in micro, small and medium enterprises; and

i. reduction of Income Tax on transfer of rights to land and/or buildings.

Meanwhile, Article 2 Paragraph (4) explains that VAT or PPnBM facilities provided in the IKN area, namely in the form of VAT, are not collected and exemption from PPnBM for the delivery of taxable goods.

Then Article 2 Paragraph (6) also explains the customs facilities that apply in IKN and partner areas.

This includes exemption from Import Duty and Tax Facilities in the Context of Imports (PDRI) for imports of goods by the central and regional governments aimed at public interests in the IKN region and partner areas.

Then, exemption from import duties and PDRI for imports of capital goods for industrial development and development as well as exemption from import duties on imports of goods and materials for development as well as industrial development in the IKN area and/or partner areas.