Income Tax Rate Reduction for Publicly Listed Companies
- July 13, 2020
- Posted by: Administrator
- Category: Tax News
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:
|Domestic Corporate Taxpayers with certain conditions:
This provision does not apply for the following shareholders:
- Public Companies that buy back their shares; and/or
- Those considered have a special relationship as regulated under the Income Tax Law or the Capital Markets Law.