On 13 September 2019, the House of Representatives approved House Bill (HB) No.4157, in its final reading, entitled “The proposed Law on Corporate Taxation and Incentive Rationalization (CITIRA)”. This bill was officially called the Trabaho bill. Now this bill sent to the Senate for approval.
The bill aims to change the National Internal Revenue Code and the progressive reduction of the corporate tax rate (CIT) from the current 30% to 20% by 2029. The reduction begins from 2021.
Another proposal of this Bill is about incentives. It also restricts fiscal incentives given to selective firms by eliminating the option for corporations, including resident foreign corporations and gives emphasize the small and medium enterprises (SMEs) for incentive purposes.
