Tax Facility of Reduction of Gross Income on Professional Placements, Internships and/or Learning Activities in the Context of Mentoring and Development of Human Resources Based on Certain Competencies
- October 15, 2019
- Posted by: Administrator
- Category: Tax News
The Government of Indonesia, through the Minister of Finance (MoF), issued MoF Regulation No.128/PMK.010/2019 (“PMK-128”) on September 6, 2019 concerning Provisions on Reduction of Gross Income on Professional Placements, Internships and/or Learning Activities in the Context of Mentoring and Development of Human Resources Based on Certain Competencies.
The points of PMK-128 can be summarized as follows:
- The reduction of gross income can reach up to 200% (two hundred percent) of the total expenses incurred for professional placements, internship, and/or learning activities, provided the requirements and competency criteria are satisfied;
- The types of deductible expenses and criteria for obtaining the additional gross income reduction are also listed, including calculation examples;
- To enjoy the facility, the Taxpayer is required to submit a notification through the OSS system with certain information provided; and
- The effectiveness of such programs can be evaluated by the related Ministry or Local Government Office. If the program is considered as ineffective, the facility will not be provided for the following fiscal years.
PMK-128 is in effect starting September 9, 2019.