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Indonesia Proposed Amendments to SEZ Regime and Tax Cuts for Certain Sectors

24 June 2019

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Proposed Changes

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Indonesia

According to two releases from Indonesia's Ministry of Finance published on 17 June and 20 June 2019, the Ministry is considering draft amendments to the special economic zones (SEZ) regime, as well as a tax cut for certain sectors. With respect to the SEZ regime, proposed amendments include a reduction in the investment threshold to IDR 20 billion, which will provide for a 50% tax exemption for five years, followed by a 25% exemption for two years, and the introduction of an income tax and value added tax exemption on the purchase or rental of property in SEZs. Certain individual...