Indonesia Enacts Government Regulation for COVID-19 Including Tax Reform for Reduced Corporate Tax Rates and Measures for Taxation of E-Transactions

The Indonesian Government has announced the enactment on 31 March 2020 of Government Regulation (in Lieu of Law) No. 1 of 2020. The regulation includes measures in response to the COVID-19 pandemic, including budget and tax reform measures.

The main tax reform measures include the following:

• The corporate tax rate is reduced to 22% for the 2020 and 2021 fiscal years, with a further reduction to 20% from 2022;
• For publicly listed companies with a minimum of 40% of shares held by public inve…