Driving Investment Opportunities in Designated Sectors and Provinces: Tax Incentives as per Government Regulation 78/2019

Government Regulation 78/2019 has been introduced to create favorable investment opportunities in specific sectors and provinces in Indonesia. This regulation provides a comprehensive range of income tax incentives for businesses operating in provinces like Aceh, Greater Jakarta, and Riau, and sectors such as marine and fisheries, pharmaceuticals, IT, and energy, among others.

Also read: Incentives For Doing Business In Indonesia

These incentives include tax deductions, accelerated depreciation of tangible assets, accelerated amortization of intangible assets, and an extended period for compensating fiscal losses. Furthermore, foreign taxpayers are subject to a reduced income tax rate of 10 percent on dividends.

Source: asiainvestmentresearch.org