New Super Tax Deduction for Corporate Taxpayers

This edition of the newsletter reviews the tax incentive policy in the form of a super tax deduction for vocational as well as research and development (R&D) activities for corporate taxpayers. This incentive is issued through Government Regulation No. 45 of 2019. In addition, the government has also revised the minister of finance regulation pertaining to controlled foreign companies (CFC) rules in Indonesia. One of the changes is related to the deemed dividend scheme. The Directorate General of Taxes has also recently released a new regulation concerning the documents deemed equal to tax invoices. The Directorate General of Taxes also affirms the mechanism for the issuance of certificates of the utilization of taxable services from outside the customs area within the customs area (SKJLN). Moreover, this edition reviews exporters’ obligation to repatriate the foreign exchange from export proceeds from natural resources (Dana Hasil Ekspor dari Sumber Daya Alam/DHE SDA). Otherwise, the exporter may be subject to fines. Finally, through MoF Regulation No. 27/PMK.010/2017, the government also provides concessions to import duties for raw crystal sugar or raw sugar originating from India.

Contents

• Super Tax Deduction for Vocational and R&D Activities
• The Government Revised the CFC Rules
• 16 Types of Documents Equal to Tax Invoices
• Exporters’ Failure to Repatriate Foreign Exchange May Result in Fines
• The DGT Affirms the Issuance Mechanism of SKJLN
• The Relaxation of Sugar Import Duty from India