Indonesia to gradually cut its corporate tax rate to below 18%

Jakarta

INDONESIA will gradually cut its corporate tax rate to discourage companies from booking profits in lower-tax countries such as Singapore, President Joko Widodo's top aide said.

The government will cut the rate from 25 per cent currently to "maybe 17.8 or 17.5 per cent", Luhut Panjaitan, the president's chief of staff, said in an interview in Jakarta on May 8. The move adds to plans for a tax amnesty for citizens as the government tries to lift revenue collection.