Details of Business and Production Types for Pioneering Industries that Can Be Granted Income-Tax Deductions

The Investment Coordinating Board (Badan Koordinasi Penanaman Modal– “ BKPM ”) has issued Regulation No. 5 of 2018 on Details of Business and Production Types for Pioneering Industries That Can Be Granted the Corporate Income-Tax Deduction Facility as Well as Guidelines and Procedures for the Granting of Corporate Income-Tax Deductions (“ Regulation 5/2018 ”), as an implementation of Regulation of the Minister of Finance No. 35/PMK.10/2018 on Corporate Income-Tax Deductions (“ Regulation 35/2018 ”). [1] Regulation 5/2018 sets out further details relating to the implementation of tax deductions for corporate income (also known as “ Tax Holidays ”) and specifically addresses the following matters: