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Indonesia Increases Monthly Corporate Tax Payment Reduction for COVID-19 and Provides New Relief for Construction Services

01 September 2020

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Approved Changes

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Indonesia

Indonesia's Ministry of Finance has issued Regulation No.110/PMK.03/2020, which expands the COVID-19 relief measures originally introduced primarily for the manufacturing sector in April 2020 and subsequently extended and expanded by Regulation No. 44/PMK.03/2020 and Regulation No. 86/PMK.03/2020. One of the main changes provided by Regulation No.110/PMK.03/2020 is an increased reduction in monthly corporate tax payments from a 30% reduction to a 50% reduction for qualifying taxpayers with effect from July 2020 to December 2020. This is available for taxpayers engaged in over 1,000 specific sectors listed in the attachments to the regulation, as well as taxpayers that have been granted...