Fiscal Facilities

TWS provides assistance to help businesses legally obtain, manage, and optimize government incentives.

Indonesia offers a range of fiscal incentives to encourage investment, strengthen domestic industries, and support business expansion across priority sectors. However, accessing these incentives requires a thorough understanding of the applicable regulations, eligibility criteria, and administrative procedures. Our Fiscal Facilities Services help investors and businesses identify the most beneficial incentives available for their projects while managing the application process from initial assessment through government approval. By combining regulatory expertise with practical implementation support, we help clients optimize investment costs, improve cash flow, and maximize the financial value of their projects.

Our expertise covers a comprehensive range of fiscal incentive programs, including Masterlist facilities for the importation of eligible machinery, production equipment, and raw materials; SKB PPN (Value Added Tax Exemption Certificate); SKB PPh (Income Tax Exemption Certificate); Tax Allowance; Tax Holiday; customs and import duty exemptions; bonded zone facilities; Special Economic Zone (SEZ) incentives; Free Trade Zone (FTZ) facilities; and other government incentive programs introduced to support priority industries and strategic investments. We manage every stage of the process—from feasibility assessments and eligibility reviews to documentation preparation, application submissions, coordination with government authorities, and ongoing compliance monitoring—providing clients with a seamless and efficient experience.

Masterlist

A Masterlist is a strategic fiscal facility in Indonesia granted by the Ministry of Investment/BKPM. It provides exemption or suspension from import duties and taxes on capital goods, raw materials, and spare parts needed for production and business expansion.

Machinery/Capital Goods: Exemption from import duties for 2 years to build or expand facilities.
Raw Materials: Duty exemptions for up to 2 years, often tied to Local Content Requirement (TKDN) compliance.

The Masterlist Facility is one of Indonesia’s key investment incentives, designed to reduce the cost of establishing or expanding business operations by providing fiscal facilities for the importation of eligible capital goods, machinery, equipment, and, in certain circumstances, raw materials. Companies undertaking qualifying investment projects may benefit from exemptions or reductions on import duties and other applicable import-related taxes, enabling them to allocate more resources toward business development, production capacity, and long-term growth. Understanding the eligibility requirements and navigating the application process, however, requires careful planning and a thorough understanding of Indonesia’s investment and customs regulations.

Our Masterlist advisory service provides comprehensive support from the initial feasibility assessment through final approval and implementation. We evaluate your investment project to determine eligibility, identify machinery, equipment, and raw materials that may qualify for fiscal facilities, and develop a structured application strategy tailored to your project. Our specialists prepare and review all supporting documentation, coordinate with the relevant investment, customs, and government authorities, and manage the submission process to ensure compliance with applicable regulations. We also assist with amendments, additional Masterlist applications, and ongoing compliance requirements as your investment progresses. By integrating Masterlist services with our broader investment advisory, licensing, taxation, and regulatory compliance solutions, we help businesses optimize project costs, improve operational efficiency, and maximize the financial incentives available for investing in Indonesia.

Contact

Aldeoz Building
Jl. Hajjah Tutty Alawiyah No.39
Jakarta Selatan, Jakarta 12740
Indonesia
+62 811-8800-6799
contact@twsakti.com

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SKB PPN (Value Added Tax Exemption Certificate)

The Surat Keterangan Bebas Pajak Pertambahan Nilai (SKB PPN), or Value Added Tax (VAT) Exemption Certificate, is a fiscal facility provided by the Indonesian Government to support eligible investment activities and strategic business sectors. Depending on the applicable regulations and the nature of the investment, qualifying companies may obtain VAT exemptions on the importation or acquisition of certain capital goods, machinery, equipment, or taxable goods and services used in approved projects. Properly utilizing this facility can significantly reduce upfront investment costs, improve cash flow, and enhance the overall financial viability of a project.

Our SKB PPN advisory service provides comprehensive support throughout the application and compliance process. We begin by assessing your project’s eligibility based on prevailing tax regulations and investment policies, followed by identifying the transactions and assets that may qualify for VAT exemption. Our specialists prepare and review the required documentation, coordinate submissions with the relevant tax authorities and government agencies, and monitor the application through to approval. We also provide ongoing advisory services to ensure that the facility is utilized in accordance with regulatory requirements, helping businesses maintain compliance while maximizing the financial benefits available under Indonesia’s fiscal incentive framework.

SKB PPh (Income Tax Exemption Certificate)

Surat Keterangan Bebas Pajak Penghasilan (SKB PPh), or Income Tax Exemption Certificate, is a fiscal facility that allows eligible businesses to receive exemptions from specific income tax obligations on qualifying transactions, imports, or procurement activities, in accordance with Indonesian tax regulations. This incentive is intended to support strategic investments, promote industrial development, and improve the financial feasibility of approved projects by reducing tax costs during critical phases of business establishment and expansion. Determining eligibility and complying with the applicable requirements, however, requires careful analysis of the relevant tax provisions and investment regulations.

Our SKB PPh advisory service provides end-to-end assistance throughout the application and compliance process. We assess your project’s eligibility, identify applicable tax incentives, and prepare the documentation required to support a successful application. Our specialists coordinate with the relevant tax authorities and government agencies, manage the submission process, and provide ongoing guidance to ensure the exemption is applied correctly and maintained in accordance with prevailing regulations. By integrating SKB PPh advisory with our broader fiscal facilities, taxation, licensing, and investment consulting services, we help businesses reduce tax exposure, improve project cash flow, and maximize the incentives available to support long-term investment success in Indonesia.

Tax Allowance

The Tax Allowance is a government incentive designed to encourage investment in priority industries, designated business sectors, and specific regions throughout Indonesia. Eligible companies may receive a range of corporate income tax benefits, including reductions in taxable income, accelerated depreciation and amortization, extended tax loss carry-forward periods, and reduced withholding tax rates on dividends paid to foreign shareholders, subject to applicable tax treaties and prevailing regulations. These incentives are intended to improve investment returns, strengthen business competitiveness, and promote sustainable economic development across strategic sectors.

Our Tax Allowance advisory service helps investors identify opportunities to benefit from these incentives while ensuring full compliance with Indonesia’s investment and taxation framework. We conduct a comprehensive eligibility assessment based on your industry classification, investment value, business activities, and project location, followed by the preparation and coordination of all required application documents. Throughout the process, our specialists liaise with the relevant ministries and government authorities, monitor application progress, and provide strategic guidance to maximize the likelihood of approval. Beyond the initial application, we continue to support clients in fulfilling ongoing compliance obligations, enabling them to optimize available tax incentives and strengthen the long-term financial performance of their investment projects.

Tax Holiday

The Tax Holiday is one of Indonesia’s most significant investment incentives, offering eligible companies a substantial reduction—or, in certain cases, a full exemption—of Corporate Income Tax (CIT) for a specified period. This incentive is primarily intended for new investments in pioneer industries and strategic sectors that contribute to national economic development, technological advancement, job creation, and increased industrial competitiveness. Depending on the nature and scale of the investment, businesses may benefit from tax relief for several years, allowing them to improve cash flow, accelerate capital recovery, and strengthen long-term financial performance.

Our Tax Holiday advisory service provides comprehensive support throughout the entire incentive application process. We begin by assessing your project’s eligibility based on investment value, business sector, capital investment plan, and applicable government regulations. Our specialists then prepare the required documentation, develop a structured application strategy, and coordinate submissions with the relevant ministries and tax authorities. Throughout the evaluation process, we work closely with government agencies to address technical requirements, respond to requests for additional information, and facilitate timely approvals. Following approval, we continue to assist clients with ongoing compliance and reporting obligations to ensure that the incentive is maintained throughout its validity period. By integrating Tax Holiday advisory with our investment, taxation, licensing, and regulatory compliance services, we help businesses maximize available fiscal incentives and establish a strong financial foundation for sustainable growth in Indonesia.