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Indonesia Providing Individual Income Tax Exemption and Corporate Tax Reduction for Manufacturing in Response to COVID-19

23 March 2020

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Approved Changes

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Indonesia

Indonesia has announced a number of tax measures in response to the COVID-19 pandemic. Some of the main measures include: An income tax exemption for manufacturing workers with income of less than IDR 200 million; A 30% corporate tax reduction and an import tax exemption for corporate taxpayers in 19 manufacturing/processing sectors; and The acceleration of VAT refunds for 19 manufacturing/processing sectors, as well as an increase in the maximum VAT refund limit for non-exporters from IDR 1 billion to IDR 5 billion, and no limit for exporters; The measures will apply for 6 months, from 1 April through September...