TaxPrime Provides Checklist for Tax Incentives under GMT

At a TaxPrime event in Financial Hall Graha CIMB Niaga, Jakarta, the firm highlighted that the government continues to offer a range of fiscal incentives to corporate taxpayers. Senior Advisor Emanuel Dewo stressed that companies and investors must evaluate these incentives carefully ahead of the 15 % Global Minimum Tax (GMT) implementation.

He classified the incentives into two groups: direct tax facilities such as tax holiday (100 % corporate income tax exemption), tax allowance (30 % net income reduction of investment) and supertax deduction (R&D or vocational costs deductible up to 300 %); and indirect facilities like masterlist, VAT/excise exemptions or refunds through KITE, and the Bonded Zone (postponement of import duties and VAT). Applications for tax allowance are submitted via the Online Single Submission (OSS) to the Investment Ministry and firms must report usage in the Investment Activity Development Report (LKPM).

Dewo warned that if a company’s effective tax rate falls below 15 % after GMT, a top‑up tax is required, which can erode or eliminate the benefit of the incentives. Consequently, firms should conduct a thorough cost‑benefit analysis when selecting incentives to avoid additional tax burdens.