TAX INCENTIVES

Is there any incentive for comply taxpayers?

Taxpayers who fall under criteria below, will receive the decisions of pre-audit refund of tax overpayment upon request not more than 3 (three) months from the date of receipt of the income tax refund request, and not more than 1 (one) month from the date of receipt of the VAT refund request.

-	File tax return for all taxes in time within last 2 years,
-	Having no tax arrears,
-	Having no tax fraud and crime within last 10 years,
-	Having unqualified opinion of certified public accountant,

Is there any incentive for taxpayer who invests in certain region and pioneer industry?

A taxpayer who invest capital in certain sectors and or in certain regions may be granted tax incentives in the from of:

a.	up to 30% (thirty percent) investment allowances;
b.	accelerated depreciation and amortization;
c.	extended loss carried forward up to 10 (ten) years; and
d.	10% (ten percent) withholding tax on dividends referred to in Article 26 of the income tax law (prescribed rate is 20%), unless the tax rate under the relevant tax treaty is lower.

Is there any incentive for taxpayers who take part in debt restructuring program?

Taxpayers who take part in debt restructuring program through a special institution established by the government may enjoy a limited tax incentive; i.e. in term of the period and its type, tax relief of income tax payable will be granted on:

a.	discharge of indebtedness;
b.	debt to asset swap;
c.	debt to equity swap.