Indonesia to cut corporate tax cut by 20 percent

Jakarta / Bloomberg

Indonesia plans to cut corporate tax to 20 percent this year, from 25 percent, as it tries to attract investment to spur the economy. The move will need parliamentary approval, Finance Minister Bambang Brodjonegoro said on Monday. A 20 percent rate will be “competitive,” he said.
“If possible we will discuss it immediately, this year,” Brodjonegoro said. “We’re seeking a figure that’s in line with neighboring countries but also not too far from other Asean countries. So we think 20 percent is still competitive in Asean.”
Plans for a tax cut come as President Joko Widodo’s government is falling short of its revenue collection targets, putting its 2016 budget spending plans at risk. Lawmakers are holding up the government’s bill for a tax amnesty, aimed at raising more than $4 billion by persuading Indonesians to bring home money from overseas.