Selasa 08 Jan 2019 19:13 WIB

Ministry mulls income tax reduction on corporate taxpayers

Compared to other emerging countries, Indonesia's tax tariff not really high.

Red: Reiny Dwinanda
Finance Minister Sri Mulyani (left) and State Intelligence Agency Chief Budi Gunawan (right) attend a plenary cabinet meeting on the 2019 national program and activities, Jakarta, Monday.
Foto: Antara/Puspa Perwitasari
Finance Minister Sri Mulyani (left) and State Intelligence Agency Chief Budi Gunawan (right) attend a plenary cabinet meeting on the 2019 national program and activities, Jakarta, Monday.

REPUBLIKA.CO.ID, JAKARTA -- The Finance Ministry is considering a reduction in the tariff of income tax on corporate taxpayers. The step believed will improve the competitive edge of the national industry.

"We are considering the reduction of income tax on corporate taxpayers. Compared to that of emerging countries, our tax tariff of 25 percent is really not high and is not the lowest one," Finance Minister Sri Mulyani Indrawati said here on Tuesday.

The tariff of income tax on corporate taxpayers in Indonesia is higher than those of neighboring countries, such as Singapore at 17 percent, Thailand at 20 percent, Vietnam at 22 percent, and Malaysia at 24 percent, she stated. In fact, the adjustment of the income tax tariff will offer incentives to business agents because it will encourage export-oriented manufacturing industries.

"Compared to Malaysia and Thailand, we are not worse. But we are lower than the Philippines which imposes higher tariffs at 30 percent," she noted.