Ministry of Finance Prepares New Basis for Tax Holidays

The government has begun drafting Regulation of the Minister of Finance on the Second Amendment to Regulation of the Minister of Finance No. 130/PMK.010/2020 as amended by Regulation of the Minister of Finance No. 69 of 2024 on the Granting of Corporate Income Tax Deduction Facilities (collectively referred to as “Regulation 130/2020”) which will expire in 2025. This legal instrument will serve as the basis for the government in granting tax holidays in the following years.

“This adjustment is considered important to continue to encourage increased investment and national economic growth through targeted and sustainable fiscal support,” said an internal source at the Directorate-General of Economic and Fiscal Strategy (DJSEF) of the Ministry of Finance to Hukumonline.

The provision of Corporate Income Tax reduction facilities for pioneer industries allows taxpayers to take advantage of tax holidays as regulated in the global minimum tax (GMT).

“It is still in the process of harmonization between ministries/agencies in the Ministry of Law,” he added.