Companies Can Now Propose Super Deduction Tax

Companies carrying out vocational activities may immediately propose for a super deduction tax of up to 200 percent after the Finance Minister has issued Ministerial Regulation No.28/2019 on reduced gross income calculation for vocational activities. The maximum value includes a deduction in gross income by 100 percent of the total costs for vocational activities, as well as an additional 100 percent reduction of the total cost.

There are five types of costs may obtain additional 100 percent income deduction, including the cost for providing specific physical facilities like training venues and its supporting costs, as well as cost of mentors and goods or materials for work practices, apprenticeship, or learning activities. Taxpayers willing to obtain additional income deduction must submit a notification through the Online Single Submission (OSS) by attaching a cooperation agreement and a valid fiscal statement.