Four Sector Can Tax Incentives

Four Sector Can Tax Incentives - Government focus on deepening the tax incentive to four industrial sectors. The four industry sectors will be accommodated in the revised Government Regulation (PP) No. 62 of 2008 concerning Income Tax Facilities (Income Tax) for Investment in Certain Business Fields and / or Specific Areas.

Edy Putra Irawady, Deputy Coordinating Minister for Economic Affairs, Trade and Industry said the first sector which was deepened to the renewable energy industry such as ethanol. "Then the rubber industry such as tires and pharmaceuticals, and petrochemicals," said Edy interrupted Idul Fitri open house event on Friday (09/10/2010).

Head of Investment Coordinating Board (BKPM) said Gita Wirjawan, a step the government revised the PP 62 of 2008 because the offers from a number of investors who want to sink money in Indonesia, but the sector has not accommodated these rules. One of the companies in question is a Korean tire company would invest $ 1.2 billion U.S. dollars.

Tax incentives contained in Regulation 62 of 2008 are given tax incentives is a reduction in net income 30 percent of the total investments to be expensed over six years by 5 percent each year.

Other facilities include depreciation and amortization, the imposition of tax on dividends paid to foreign tax subjects by 10 percent. In addition there is also compensation for losses between five and 10 years.