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New Indonesian Investment Incentive Regulations Take Effect

06 May 2015

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Approved Changes

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Indonesia

On 6 May 2015, Indonesia's Regulation No. 18/2015 took effect, replacing Regulation No. 1/2007 as amended by Regulation No. 52/2011. The new regulation covers the incentives for domestic investment in certain sectors and regions by domestic legal entities. Main Benefits The main benefits of the incentive scheme include: A reduction of taxable income of up to 5% of the asset investment amount per year over 6 years; Accelerated depreciation and amortization; A reduced withholding tax rate on dividends of 10% (standard 20% unless reduced by a tax treaty); An extended loss carry-forward period of up to a maximum of 10...