Politics

Jokowi exempts tax on exporters Save dollars in RI, here are the rules!

Jakarta, CNBC Indonesia-President Joko Widodo finally issued Government Regulation Number 22 of 2024 regarding the treatment of income tax (PPh) on income from the investment of foreign exchange earnings from exports (DHE) of natural resources (SDA) in certain monetary and financial instruments in Indonesia. In this PP, the government offers tax incentives to exporters who place their dollars domestically.

In the PP signed by President Joko Widodo on May 20, 2024, incentives for exporters are regulated in Article 4. Article 4, paragraph (1), of this regulation states:“The final income tax as provided for in Article 2 is calculated by multiplying the final income tax rate by the tax base,” as cited in a copy of the PP, Wednesday (22/ 5/2024).

Article 4, paragraph (2), letters a and b, further explain the incentives given to exporters who place the DHE SDA in foreign currencies or which have been converted into rupees. Here are the details.

A. on income from certain monetary instruments and/or financial instruments as provided for in Article 3 whose funds are in foreign currencies are subject to final income tax with:

1. rate of 0% (zero percent), for instruments whose investment duration is greater than 6 (six) months;

2. rate of 2.5% (two point five percent) for instruments with an investment duration of 6 (six) months;

3. rate of 7.5% (seven point five percent), for instruments whose investment duration is from 3 (three) months to less than 6 (six) months; Or

4. rate of 10% (ten percent), for instruments whose investment duration is between 1 (one) month and less than 3 (three) months.

b. on income from certain monetary instruments and/or financial instruments as provided for in Article 3, the funds of which are converted from foreign currencies into Rupiah currency, are subject to final income tax with:

1. rate of 0% (zero percent), for instruments whose investment duration is 6 (six) months or more than 6 (six) months;

2. rate of 2.5% (two point five percent), for instruments whose investment duration is from 3 (three) months to less than 6 (six) months; Or

3. rate of 5% (five percent), for instruments whose investment duration is from 1 (one) month to less than 3 (three) months;

[Gambas:Video CNBC]

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Jokowi exempts tax on exporters Save dollars in RI, here are the rules!

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Jokowi exempts tax on exporters Save dollars in RI, here are the rules!

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