On 9 October 2020, the Indonesian Ministry of Finance published Regulation No. 153 / PMK.010 / 2020 on the super deduction for R&D activities carried out in Indonesia. This regulation is one of the implementing regulations required under GR-45 which introduced new tax facilities for industries with certain emerging characteristics.
Regulation No. 153 / PMK.010 / 2020 clarifies the application of the 300% deduction, including the fact that a 100% deduction is made for the R&D costs incurred in that year and an additional deduction of up to 200% can be made over a period of time. Regulation No. 153/PMK.010/2020 is effective from 9 October 2020 and generally applies to R&D activities carried out from 26 June 2019.
