Tax Holiday – Indo Prime

Applying for The Tax Holiday in Indonesia

The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia. Learn how to obtain these tax benefits for your business.

What is a tax holiday?

Foreign direct investments in Indonesia are determined to receive a tax holiday facility. As a fiscal facility, tax holidays in Indonesia reduce the income taxes of any business investments. The Ministry of Finance regulates the incentive for this income tax holiday through Regulation No.130/PMK.010/2020

Application for the tax holiday

As a leading firm in business advisory services in Indonesia, Indo Prime Indonesia assists with your needs in obtaining tax holiday incentives. We ensure that all the necessary processes will run smoothly.

Eligibility and requirements

The Indonesian government provides an array of industries with tax holiday incentives. However, there are requirements to obtain this convenience. The industry must prioritize job creation, technological innovation, and strategic value for the nation’s economic outlook.

Additionally, IDR 100 billion is the minimum capital investors should pay to gain a tax holiday for the investments. Currently, only 18 business sectors offer tax holiday incentives, known as the pioneer industries.

The abovementioned requirements are only a few among the long list for an approved tax holiday. Our seasoned consultants will guide you to understand the foreign direct investment regulations to obtain a tax benefit in Indonesia.

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Frequent Asked Questions

How many types of business licenses are there in Indonesia?

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Is it mandatory to apply for a permanent business license in Indonesia?

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

What Our Clients Say

After comparing several consultants, I found Indo Prime Indonesia is a international and professional organization with good understanding of local market. Indo Prime Indonesia helped our company to set up our first Indonesian entity, and also helps with day-to-day operation. Indo Prime Indonesia showed high level of professionalism. Jump start the business in Indonesia, take care of routine process, therefore we can focus more on our core business.

We were searching for suitable partner for the begining of our operation on Indonesian market. After short exploration and recommendation from our business partners we decided for Indo Prime. Local knowledge, orientation at our business problematics, contacts and language. In a friendly approach combined with professional service. Consultation before the project – avoids so much unnecessary act of “foreigners” worse overview of the Indonesian legislative.

We chose Indo Prime because we considered Indo Prime as a professional company with a good attitude and a streamlined business model. Indo Prime met all our expectations as it created the atmosphere of accountability and transparency. The most significant added values that we received from cooperation with Indo Prime are the time we saved and mistakes we avoided.

Indo Prime provided outstanding services in registering our representative office in Indonesia in a timely manner. Their financial services have been helping us a lot — our local employees feel secure working for our company. Indo Prime became our reliable partner with quick response on our needs. Their flexibility and full support of our business in Indonesia are the main reasons to continue in our cooperation.