On July 27, 2020, the Minister of Finance (the “Minister”) amended the implementing regulation of Government Regulation No. 78 of 2019 (“GR 78”), namely, the Minister Regulation No. 96/PMK.01/2020 of 2020 dated July 27, 2020 on the Amendment of the Minister Regulation No. 11/PMK.010/2020 on the Implementation of Government Regulation No. 78 of 2019 on the Income Tax Incentives for Investments in Certain Industries and/or Regions (“Minister Reg. 96”).

As a brief background, the Minister Regulation No. 11/PMK.010/2020 (“Minister Reg. 11”) as the main implementing regulation of GR 78 regulates matters related with the provisions of income tax incentives for investors in certain industries and/or regions, which includes (i) the requirements for tax incentives over tangible fixed assets, (ii) the application procedures to obtain tax incentives, and (iii) the requirements to utilize the tax incentives. Further elaboration on the income tax incentives referred to herein may be read on our Newsflash on GR 78.

In summary, Minister Reg. 96 amends the authorizations of the government officials on the procedures of the income tax incentives provisions. The differences between Minister Reg. 11 and Minister Reg. 96 will be elaborated below.

Minister Reg. 96 is effective 15 (fifteen) days since the date of promulgation, which is as of August 11, 2020.