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No Income Tax for Banks as Indonesia Seeks New Capital Investors

Banks, insurers to get corporate tax waiver for up to 25 years
Government may bear workers’ personal income tax through 2035

By

Norman Harsono and

Eko Listiyorini

February 22, 2023, 1:00 AM UTC

Indonesia is unveiling a slew of tax breaks to lure companies and people to move to its new capital in the heart of Borneo.

Banks and insurers operating in Nusantara — as the capital is known — would pay no income tax for up to 25 years if they invest before 2035, according to an investment ministry presentation seen by Bloomberg. Those investing before 2045 can get up to 20 years of tax break.