Omnibus Law Taxation ClusterIndonesia
The Omnibus Law simultaneously changed several areas in the Law (UU) on the areas of General Provisions and Tax Administration (KUP), Income Tax (PPh) and Value Added Tax (VAT).
The taxation under Omnibus Law itself represents an effort to strengthen Indonesia's economy by encouraging investment amidst the economic slowdown that occurred in the world, especially during and after the Covid-19 Pandemic so that it can absorb the widest possible workforce. The Tax Omnibus Law is also believed to be able to increase people's purchasing power and consumption levels.
Facilities such as gradually decreasing the corporate income tax, eliminating domestic dividend income tax, relaxation of the Input VAT crediting mechanism, and revision of administrative sanctions should be accompanied by increased taxpayer compliance. The policy relaxation should also be a trigger for business
expansion of business actors.
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