cs@seimangkeisez.com

Incentive

FISCAL INCENTIVES

(MOF Regulation NO.237/PMK.010/2020)

(MOF Regulation NO.237/PMK.010/2020)

No. Scope Facililty and Easiness
1 Income Tax
    Main Activity (Tax Holiday):
  • Main Activity (Tax Holiday):
  • Income tax reduction up to 100% with minimum investment of Rp 100.000.000.000 (100 Billion) with the duration provisions as follows:
    - Income tax reduction for 10 years with total investment of 100 billion – less than 500 billion
    - Income tax reduction for 15 years with total investment of 500 billion – less than 1 trillion
    - Income tax reduction of 20 years with total investment of 1 trillion and beyond
    Exclude Main Activity (Tax Allowance):
    - Reduction of Net Income by 30% for 6 years
    - Accelerated Depreciation
    Income tax on dividend for 10%
    Compensation for loss of 5-10 years
2 VAT and Luxury Sales Taxes
  • - Import: not levied
    - Input form other places in the customs area to SEZ, not levied
    - Output form SEZ to other places in the customs area, not levied
    - Transaction among enterprises in SEZ: not levied
    - Transaction with enterprises in other SEZ: not levied
3 Customs - From SEZ to domestic market: import duty using Certificate of Origin (CoA)
4 Property Ownership for Foreigners
  • - Foreigners / foreign enterprises may have residential / property in SEZ (house site or apartment unit)
    - Owner occupancy / property is given residence permit with a guarantee from Managing Enterprises of SEZ
    - Exempted for VAT and luxury Sales Taxes
5 Main Activity: Tourism Sector
  • - May be granted for tax reduction by 50-100% on the first development
    - May be granted for entertainment tax reduction by 50-100%
No. Scope Facililty and Easiness
1 Income Tax
    Main Activity (Tax Holiday):
  • Main Activity (Tax Holiday):
  • Income tax reduction up to 100% with minimum investment of Rp 100.000.000.000 (100 Billion) with the duration provisions as follows:
    - Income tax reduction for 10 years with total investment of 100 billion – less than 500 billion
    - Income tax reduction for 15 years with total investment of 500 billion – less than 1 trillion
    - Income tax reduction of 20 years with total investment of 1 trillion and beyond
    Exclude Main Activity (Tax Allowance):
    - Reduction of Net Income by 30% for 6 years
    - Accelerated Depreciation
    Income tax on dividend for 10%
    Compensation for loss of 5-10 years
2 VAT and Luxury Sales Taxes
  • - Import: not levied
    - Input form other places in the customs area to SEZ, not levied
    - Output form SEZ to other places in the customs area, not levied
    - Transaction among enterprises in SEZ: not levied
    - Transaction with enterprises in other SEZ: not levied
3 Customs - From SEZ to domestic market: import duty using Certificate of Origin (CoA)
4 Property Ownership for Foreigners
  • - Foreigners / foreign enterprises may have residential / property in SEZ (house site or apartment unit)
    - Owner occupancy / property is given residence permit with a guarantee from Managing Enterprises of SEZ
    - Exempted for VAT and luxury Sales Taxes
5 Main Activity: Tourism Sector
  • - May be granted for tax reduction by 50-100% on the first development
    - May be granted for entertainment tax reduction by 50-100%

NON FISCAL INCENTIVES

No. Scope Facility and Easiness
6 Employment
  • - In SEZ will be established wage council and tripartite cooperation institution
    - Only one worker union in every company
    - Ratification and extension planning of foreign worker utilization in SEZ
    - Permit extension using foreign workers in SEZ
7 Immigration
  • - Visitation facility in form of visa upon arrival for 30 days and can be extended five (5) times each 30 days
    - Multiple visa valid for 1 year
    - Residence permit for foreigners that have property in SEZ
    - Residence Permits elderly foreigners living in SEZ tourism
8 Land
  • - SEZ that is proposed by private enterprises, is given Building Using Rights and the extension is given directly with the process of granting rights
    - SEZ’s Administrator can give land service
9 License
  • - Administrator responsible for issuing licenses and permits through the principle of one stop service in SEZ
    - Permit publishing acceleration, not later than (in case of all requirements are completed)
    - Implementation of the licensing and non licensing requirement compliance (check list)
    - Process and completion of licensing and non-licensing of immigration, labor and land on in SEZ’s Administrator
No. Scope Facility and Easiness
6 Employment
  • - In SEZ will be established wage council and tripartite cooperation institution
    - Only one worker union in every company
    - Ratification and extension planning of foreign worker utilization in SEZ
    - Permit extension using foreign workers in SEZ
7 Immigration
  • - Visitation facility in form of visa upon arrival for 30 days and can be extended five (5) times each 30 days
    - Multiple visa valid for 1 year
    - Residence permit for foreigners that have property in SEZ
    - Residence Permits elderly foreigners living in SEZ tourism
8 Land
  • - SEZ that is proposed by private enterprises, is given Building Using Rights and the extension is given directly with the process of granting rights
    - SEZ’s Administrator can give land service
9 License
  • - Administrator responsible for issuing licenses and permits through the principle of one stop service in SEZ
    - Permit publishing acceleration, not later than (in case of all requirements are completed)
    - Implementation of the licensing and non licensing requirement compliance (check list)
    - Process and completion of licensing and non-licensing of immigration, labor and land on in SEZ’s Administrator