THE GOV’T IS CURRENTLY REVIEWING TAX INCENTIVES FOR THE TOURISM SECTOR

COORDINATING Minister for Economic Affairs Airlangga Hartarto said that his party together with the Ministry of Finance are currently reviewing Income Tax (PPh) incentives for the tourism sector.

“The government is reviewing its PPh (incentives), PPh for the tourism sector. For the tourism sector, this is one of the slowest recoveries post-COVID-19, and not all tourism sectors from a financial perspective have recovered,” said Coordinating Minister Airlangga at a press conference. Briefing of the Job Creation Committee and Pre-Employment Card Program Partners in Jakarta, Tuesday (01/23), 2024.

Airlangga revealed that the incentive will be in the form of DTP Corporate Income Tax (borne by the government) of 10%. So, the government will provide convenience in the form of Government Borne Tax (DTP) or other formats with a value of 10% of PPh.

Apart from that, Airlangga also explained again regarding the implementation of fiscal incentives for Corporate Income Tax (PPh) on Entertainment Service Organizers which increased by 40-75%. Referring to the provisions of article 101 of the Law (UU) on Financial Relations between the Central Government and Regional Governments (HKPD), it has been regulated that Regional Heads in office can provide fiscal incentives in the form of reductions in regional tax principal.

This has been confirmed by the Minister of Home Affairs through SE Number 900.1.13.1/403/SJ dated 19 January 2024 to the Regional Governor of DKI Jakarta and the Regent/Mayor.

Thus, said Airlangga, based on existing provisions the Regional Head has the authority to reduce the rate of Certain Goods and Services Tax (PBJT) on Entertainment Services. The provision of fiscal incentives by reducing PBJT entertainment rates is sufficient to be stipulated in a Regional Head Regulation (Perkada).

“Article 101 of the HKPD Law provides an opportunity for regional officials in the name of their office to provide incentives. So, this has been provided in the HKPD law, so they can provide incentives below 70%,” explained Airlangga. [antaranews]