On 1 October 2020, the Directorate General of Taxation (DGT) of Indonesia published the Regulation No. 143/PMK.03/2020 extending tax incentives to December 31 for medical equipment and services necessary to fight the corona-virus pandemic.
The extension applies to (i) the additional deduction for taxpayers whose production costs incurred in the domestic production of medical equipment (ii) the deduction of donations to government-approved institutions to fight the pandemic (iii) 0% tax rate for health professionals on risk compensation (iv) 0% tax rate for rental income derived from qualifying large leases of property and assets to the government.
The regulations entered into force on 1 October 2020.
