Minister of Finance (MoF) Regulation No. 40 of 2023 (“PMK-40”) regulates the requirements and procedures for a Listed Company to enjoy a 3% (three percent) reduction in the Corporate Income Tax (“CIT”) rate. PMK 40 revokes the previous regulation, MoF Regulation No. 123/PMK.03/2020.

The Listed Company is required to submit monthly reports and reports on ownership of shares by parties that have a special relationship with major shareholders and controlling shareholders. The Listed Company must submit these reports as part of its CIT Return.

If a Taxpayer fails to meet the specified requirements, the income tax payable will be calculated at the normal rate of 22%.

This regulation became effective as of April 13, 2023.