Weighing the Impact of Additional Discounts in Article 25 Income Tax
The government plans to increase the installment discounts for Article 25 income tax as an incentive in amid the COVID-19 pandemic. Head of the Fiscal Policy Office (BKF) of the Finance Ministry Febrio Kacaribu said that the installment discount would increase since the incentive had been deemed not optimal. Since April 2020, the government has provided a 30 percent discount on Article 25 Income Tax installments for businesses in the industrial sector.
"The utilization of Article 25 income tax installment facilities is still low. Later, utilization will be made faster, and discounts will be increased to make it more attractive to taxpayers," said Febrio. Referring to Finance Minister Regulation No.86/2020, the government has expanded the Article 25 income tax discount to apply to 1,013 industrial sectors from only 846 industrial sectors, companies receiving import facilities for export (KITE), or companies in bonded zones.