Income Tax Rate Reduction for Publicly Listed Companies

On 19 June 2020, the Government issued Regulation No. 30 of 2020 (GR-30) to stipulate several new provisions on Income Tax reduction for Publicly Listed Companies.

The current Corporate Income Tax (CIT) rates are:

  • 22% for 2020-2021
  • 20% starting in fiscal year 2022 onwards

Under GR-30, publicly listed companies with at least 40% of paid-in shares listed on the Indonesia Stock Exchange will enjoy an additional 3% reduction in the CIT rate. The salient points of GR-30 are as follows:

Taxpayer Tax Rate

FY 2020

Tax Rate

FY 2021

Tax Rate

FY 2022

  • Domestic Corporate Taxpayers
  • Permanent Establishments
22% 22% 20%
Domestic Corporate Taxpayers with certain conditions:

  1. Publicly listed companies with minimum 40% of listed shares, which must be owned by a minimum of 300 shareholders and each shareholder may only own a maximum of 5% of the total issued and fully paid-up shares.
  2. The provisions above must fulfilled at least 183 calendar days within one fiscal year.
  3. The fulfilment of the above requirements is done by submitting a report to the DGT.
19% 19% 17%

This provision does not apply for the following shareholders:

  1. Public Companies that buy back their shares; and/or
  2. Those considered have a special relationship as regulated under the Income Tax Law or the Capital Markets Law.
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