On 13 March 2020, the Indonesian Ministry of Finance has made fiscal policy volume 2 to mitigate the negative impact of the coronavirus on the economy. Under this, a six-month income tax exemption is introduced starting in April for manufacturing workers earning up to IDR 200 million (about $13,403) per year. Relaxation of PPh Article 22 Imports for 19 manufacturing industries including importers of raw materials granted for 6 months from April-September 2020 both for manufacturing industries in the KITE and non-KITE regions. The government has postponed Article 25 income tax for corporations located in KITE and non-KITE for 6 months from April to September.
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