Indonesia: Expanded tax incentives for apparel, leather and footwear industries

Indonesia: Expanded tax incentives, certain industries

A government regulation expands the locations where tax incentives are available for investments made by certain business lines. With the government regulation (No. 9, 2016), tax incentives—previously either not available or limited to investments in certain regions—are being available for the apparel industry and for the leather and footwear sector in all regions.

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There are no changes to the tax incentives themselves. Accordingly, the incentives—including a 30% deduction of the amount of capital investment in tangible fixed assets (including land), accelerated depreciation, a 10% rate of withholding on dividends paid to foreign taxpayers, and expanded use of tax loss carryforwards to 10 years (instead of five years)—continue to apply.

 

Read a June 2016 report [PDF 1.5 MB] prepared by the KPMG member firm in Indonesia: Government Regulation No. 9, Year 2016 – Expands Available Tax Facilities to Certain Business Lines to All Regions

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