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The office of the Investment Coordinating Board in Jakarta. (kontan.co.id/Achmad Fauzi)

The Investment Coordination Board (BKPM) has said that more investors applied for tax holidays after the government relaxed the procedures for obtaining the fiscal incentive.

BKPM investment service deputy Husen Maulana said recently that before the tax holiday feature was included in the Online Single Submission (OSS) system, there had been eight investors – two Indonesians and six foreigners with total investments worth about Rp 45 trillion (US$3.18 billion).

The two Indonesian investors plan to invest in electricity plants, while the six foreign investors plan to invest in metal manufacturing industries, electrical power plants and the chemical industry that sources its raw materials from oil, gas and coal.

“Meanwhile, there is one investor that had applied for a tax holiday through the OSS system, a foreign company, that runs an electrical power plant,” Husen said as quoted by kontan.co.id, adding that the company plans to spend Rp 5.5 trillion on the project.

Taxpayers who wanted to apply for the tax holiday, are advised to access the OSS system because since the system was handed over the BKPM, all licensing arrangements and tax holidays have to be processed through it.

The ruling was stipulated in Finance Ministerial Regulation (PMK) No. 150/PMK.010/2018 on the deduction facility of income taxes. “The process is very simple. If they are included in the criteria and are eligible to obtain a tax holiday and they want to invest at least Rp 500 billion, they will get the tax holiday,” he added.

According to the Finance Ministry, 12 taxpayers have obtained tax holidays with a total investment of Rp 210.8 trillion. (bbn)

Source“TheJakrtaPost”