Super tax deduction until 300% for R&D pharmaceutical industry

The government provides super tax deduction incentives for research and development (R&D) activities for the pharmaceutical industry. The reduction in gross income of up to 300% of the total costs incurred.

These provisions are as in the Minister of Finance Regulation (PMK) 153/PMK.010/2020 concerning Granting of Reduction in Gross Income for Certain Research and Development Activities in Indonesia. This regulation will take effect as of October 2020. One of the focuses of R&D which can receive a reduction in gross income of up to 300% is pharmacy with research and development of pharmaceutical ingredients, pharmaceuticals for humans, traditional medicine, phytopharmacy industry, extracts and natural ingredients industry, as well as medical and laboratory equipment.

Won’t affect Indonesia’s position in South China Sea …