Read DGT’s Official Statement on Tax Holiday under MoF Reg. 69/2024

“We are prepared to help provide an understanding of the provisions under MoF Reg. 69/2024,” stated the Director of Tax Dissemination, Services, and Public Relations of the DGT Dwi Astuti, quoted on Monday (18/11/2024).

A minimum of three reasons encourage the government to revise the granting of tax holiday for new investments in pioneer industries. First, the period for the proposal for the granting of the tax holiday facility pursuant to MoF Reg. 130/2020 expired on 8 October 2024.

The government, therefore, considers it necessary to issue a regulation that extends the period of the proposed granting of tax holiday. Second, the regulation of tax administration services in the application for tax holiday needs to be adjusted to support the implementation of the coretax.

Third, the implementation of the global minimum tax policy which impacts the framework of the granting of tax incentives, including the granting of tax holiday.

MoF Reg. 69/2024 also adjusts the criteria for tax holiday recipients, including the corporate taxpayers being required to perform new investments for which a decision or notification concerning the granting of investment-based corporate income tax facilities has never been issued.

The decision or notification includes decisions related to the granting of the corporate income tax reduction facility pursuant to the government regulation concerning the granting of business licensing, ease of doing business and investment facilities for entrepreneurs in the Nusantara Capital (Ibu Kota Nusantara/IKN in Indonesian).

In addition, MoF Reg. 69/2024 also contains new clauses to anticipate the implementation of the global minimum tax policy. Check out Global Minimum Tax, Tax Holiday Taxpayers Subject to Domestic Minimum Tax.

Based on these clauses, taxpayers that have obtained decisions on tax holiday that are still valid and are included as certain taxpayers in the global minimum tax imposition rules will be subject to additional domestic minimum tax pursuant to the provisions.

In addition, MoF Reg. 69/2024 also stipulates the extension of the proposed period of the granting of the corporate income tax reduction facility. The proposed period for the granting of the corporate income tax reduction facility has been extended until 31 December 2025

In essence, the MoF Reg. 69/2024 has been issued to provide legal certainty to maintain the investment climate. More complete provisions on MoF Reg. 69/2024 can be accessed and downloaded on Perpajakan DDTC. (rig)