Phased cuts in corporate tax rates: Sri Mulyani

Phased cuts in corporate tax rates: Sri Mulyani

Finance Minister of Indonesia, Sri Mulyani, delivered a statement to reporters at the Presidential Office in Jakarta, Friday (Nov 22, 2019). ANTARA/Bayu Prasetyo/GTM

The tax cut will be backed by Indonesia's upcoming tax omnibus bill – a single bill amending several laws which aim to support business and investment
Jakarta (ANTARA) - Minister of Finance Sri Mulyani will cut corporate taxes in phases from 22 percent in the 2021-2022 period to 20 percent in 2023 and will submit her proposal to the House of Representatives in December. The tax cut will be backed by Indonesia's upcoming tax omnibus bill – a single bill amending several laws which aim to support business and investment, Sri Mulyani said to reporters at the Presidential Office in Jakarta, Friday.

She also announced the ministry is planning to further reduce the corporate tax by three percent or below for publicly-listed companies. Apart from a tax cut, domestic income tax may also be lifted.

"The income tax cut will be ruled by the governmental regulations," the minister said.

Related news: Tax receipts grow at slow pace until late May: Minister

Meanwhile, dual residents or foreigners whose salaries are from Indonesia may become part of the income tax bracket. However, Indonesian nationals working overseas for more than 183 days will be exempt from income tax. (INE)

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