BKPM to issue procedure of applying for tax allowance

Jakarta (ANTARA Lampung) - The Investment Coordinating Board (BKPM) is set to issue a regulation on the procedure of applying for tax allowances on Monday (May 4).

The regulation is the implementation of government regulation number 18 of 2015 on the granting of tax allowances to investors engaged in certain business fields and/or operating in certain areas. The government regulation replaced government regulation number 52 of 2011.

With the BKPM chief's regulation, investors can apply for tax allowances using new mechanism when government regulation number 18 of 2015 will come into force on May 6, 2015, BKPM Chief Franky Sibarani said in a press statement released on Sunday.

The government regulation and its all implementation regulations will take effect on May 6, 2015 based on a decision reached at a coordination meeting led by the coordinating minister for economic affairs on April 30.

Franky said the BKPM chief's regulation contains procedure and requirements to apply for the facility through one-stop integrated service at the BKPM office.

The BKPM chief's regulation shows how strong is the government's commitment to investment licensing and non-licensing process in a quick, simple, transparent and integrated manner, he said.

"To apply for permits and facilities, investors could come to the one-stop integrated service at the BKPM and no longer need to come to ministries/government institutions," he said.

The tax allowances include reduction of net income as much as 30 percent of the overall investment for six years or 5 percent per year and expedited depreciation and amortization process.(Ant)