According to the ministry's expert staff for tax compliance Yon Arsal, the tax exemption applies to MSMEs, with an annual turnover not higher than Rp50 billion (US$3.2 million).
"We are giving an incentive in the form of zero-percent income tax to all MSMEs that run businesses in IKN. Thus, this incentive applies to a wide range of taxpayers," Arsal remarked at the IKN Investment Opportunities Roadshow event in Jakarta on Friday.
He noted that provisions regarding zero-percent tax incentive are outlined in Government Regulation No.12 of 2023 regarding the granting of business licenses, ease of doing business, and investment facilities for business actors in IKN.
Arsal expressed belief that the incentive would boost the participation of business actors in Indonesia's future capital city.
In addition to the zero-percent tax incentive, he revealed that the government has planned to provide business actors in IKN with an incentive in the form of a super tax deduction of up to 200 percent of the budget they allocate for supporting the development of public and social facilities in Nusantara.
"In general, we do not provide incentives to those giving donations. However, in IKN, we will give incentives to those donating for the development of public facilities, social facilities, and other facilities required according to the IKN development plans," he elaborated.
He further explained that a tax deduction of a maximum of 250 percent will be given to companies that provide vocational training activities for human resources in IKN, such as internship programs and field work practices.
"In Jakarta, we only give super tax deduction of a maximum of 200 percent, but in IKN, we can give a deduction of up to 250 percent," he remarked.
Arsal highlighted that since July this year, the National Capital Authority (OIKN) has been actively conducting dissemination of information and coaching activities for local business actors in Nusantara in the hopes of enabling them to take on an active role in economic activities in the city.
The activities have targeted business players from various regions in East Kalimantan Province, including North Penajam Paser, Kutai Kartanegara, West Kutai, Samarinda, and Balikpapan.
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Translator: Bayu Saputra, Tegar Nurfitra
Editor: Azis Kurmala
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