SMM10, 12 Jan: recently, Huayue Nickel Cobalt (Indonesia) Co., Ltd., a holding subsidiary of Zhejiang Huayu Cobalt Co., Ltd., received the decision of the Minister of Finance of the Republic of Indonesia on "preferential policies on granting enterprise income tax relief to Huayue Company" and "exemption from import duties on machinery required for the construction of Huayue Company in the context of foreign investment".
The preferential tax policies granted to enterprises by the decision on reduction and exemption of Enterprise income tax include: a. According to the total planned investment Rp18119193190000.00 (about US $1.28 billion), a total of 15 per cent of enterprise income tax is deducted from the tax year in which commercial production begins; b. Since the expiration of the enterprise income tax deduction granted in point a above, a total of 50% of the enterprise income tax deduction has been granted for a total of 2 years; and C. According to the corporate income tax deduction period described in point a above, during that period, a third party is exempted from deducting or collecting taxes from the income received or received by the taxpayer who has received the corporate income tax deduction.
The above enterprise income tax preferential policy will be revoked, if: a. According to the results of the on-site inspection, it is found that the total actual new investment of taxpayers is less than Rp100000000000.00 (equivalent to about $7.0643 million); b.). Based on the results of the on-site inspection, it was found that the actual major business activities were inconsistent with the planned major business activities; C. In the course of the realization of new investments that have been exempted from enterprise income tax, taxpayers import, purchase or obtain second-hand capital goods, the board of directors and all the directors of the Company guarantee that there are no false records, misleading statements or material omissions in the contents of this announcement, and shall be individually and severally liable for the authenticity, accuracy and completeness of their contents. Unless the above-mentioned second-hand capital goods are relocated from other countries as a whole and are not produced domestically, and / or in accordance with laws and regulations on accelerating the implementation of national strategic projects, taxpayers receive tasks assigned by the Government; d. During the period of using the enterprise income tax deduction, the actual main business activities carried out by taxpayers are not in line with the planned main business activities; e. During the use of corporate income tax deductions, taxpayers transfer assets unless the above transfers are implemented to improve efficiency and do not result in the actual total new investment being less than the planned total new investment; and / or f. Taxpayers are moving new investments abroad. .
The preferential tax policies granted to enterprises by the decision on exemption from Import duties include: a. Machinery with an estimated C&F/CIF value of US $759.703 million as set out in this decision (the relevant machinery prices will be determined at the time of future import and stated in the notice of import of the goods and with the release consent of the Director-General of Customs) will be imported and used by Huayue, which is engaged in the manufacturing of non-ferrous base metals and is granted preferential import duty exemption. b. In accordance with Government Regulation No. 81 of 2015 on the import and / or delivery of specific strategic taxable goods exempted from VAT, machinery imported in the form of machinery and factory equipment, whether installed or still separate, is used directly by the taxable enterprise producing the dutiable goods in the production of taxable goods, but does not include spare parts, the company may be exempted from VAT levied on imports. To this end, in accordance with Finance Minister Regulation No. 268 / PMK.03/2015 on the preferential policy process for the import and / or delivery of specific strategic taxable goods exempted from VAT and the payment process and sanctions measures for specific strategic taxable goods exempted from VAT, Huayue is required to submit an application to the Director-General of Inland Revenue and the Commissioner of Inland Revenue of the Company Registration taxable Enterprises Office and obtain a VAT exemption letter. c. For the import of machinery that has been granted preferential policies, Huayue is obliged to submit an import realization report to the Investment Coordination Committee no later than 7 working days after the import is realized. The decision on exemption from Import duties shall enter into force on the date of signature and shall be valid for two years. b. This preferential policy of exemption from import duties on machinery will be terminated from the beginning of commercial production by Huayue Company. In the event of misuse of machinery, Huayue is required to pay the import duties payable and be subject to administrative sanctions in the form of fines in accordance with the laws and regulations in the customs field.
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