Indonesia Providing Individual Income Tax Exemption and Corporate Tax Reduction for Manufacturing in Response to COVID-19

Indonesia has announced a number of tax measures in response to the COVID-19 pandemic. Some of the main measures include:

• An income tax exemption for manufacturing workers with income of less than IDR 200 million;
• A 30% corporate tax reduction and an import tax exemption for corporate taxpayers in 19 manufacturing/processing sectors; and
• The acceleration of VAT refunds for 19 manufacturing/processing sectors, as well as an increase in the maximum VAT refund limit for non-exporters from IDR …