COVID-19: Indonesia Increases Fiscal Incentives to Cushion the Economy against the Pandemic

In its attempts to limit the economic impact of the COVID-19 pandemic, Indonesia’s Tax Directorate General (Tax Office) has announced an increase in tax incentives for businesses in Indonesia.

A statement issued by the Tax Office mentioned that previously announced tax relief that was set to expire in September 2020 have been extended the year end. These measures include tax breaks for small and medium enterprises (SMEs) and some manufacturing workers, as well as a discount offered on corporate tax instalments.

Further, the Government of Indonesia has extended the type of businesses that can apply for the tax incentives, covering sectors such as forestry, for example the Tax...