Indonesia: Tax-related incentives for activities in new capital city
Tax incentives for activities in the new capital city of Nusantara and its supporting areas
Tax incentives for activities in new capital city of Nusantara and its supporting areas
The government issued Government Regulation Number 12 Year 2023 (GR-12/2023) to grant the following tax incentives for activities in the new capital city of Nusantara and its supporting areas—effective 6 March 2023:
- Income tax incentives, such as tax holidays, super tax deductions, government bearing of Income Tax Article 21, and income tax exemption for transfers of land and/or building rights
- Value added tax (VAT) and/or sales tax on luxury goods (STLG) incentives, such as not-collected VAT and an exemption for STLG
- Customs incentives, such as the exemption of import duties and tax facilities relating to the taxation of imports (pajak dalam rangka impor, or PDRI)
GR-12/2023 also offers capital investment facilities including tax and non-tax incentives.
Read an April 2023 report [PDF 898 KB] prepared by the KPMG member firm in Indonesia
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