How to obtain Super Tax Deduction

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Fri, 25 Feb 2022

Despite its obvious benefits, the super tax deduction program is still not very well known by many companies. According to data from the Ministry of Education and Culture, in 2020, from 205,686 industries that collaborate with vocational schools, only 26 taxpayers have taken advantage of this program. This is unfortunate as the benefits offered are very promising for businesses.

There are mainly two steps to getting the 200% super tax deduction. First, the super tax deduction program provides an opportunity for all domestic taxpayers who conduct education, training, or apprenticeship activities to obtain a 100% reduction. Furthermore, business entities that legally cooperate with vocational schools for educational activities, on the job practices, and apprenticeship can get one more advantage in the form of an additional reduction of 100%. In other words, only those who officially cooperate with vocational schools can propose an additional 100% reduction.

In order to create a synergy between industry and vocational education, the government has provided guidelines in the form of nine link and match packages. These are curriculum adjustments, project-based learning, provision of appropriate instructors, internships/on the job practices, certification for students and teachers, teacher training, research and development, job recruitment, and scholarships. The implementation of link and match packages offered by the Ministry of Education and Culture attempts to direct the students to later become part of the companies. These students are company assets that are able to answer the company's labor needs and can further can support the availability of qualified labor for a long period of time.

Another advantage that can be taken by industries comes in the role of a third party that is professional and experienced in providing legal collaboration between vocational education with industry and is willing to assist the process in enrolling the super tax deduction program. In this regard, joining as a partner of EKONID’s GDVET program can be a convenient solution in providing quality education, on the job practice or an internship based on the German standard as well as in bridging a succesfull application for the super tax deduction.

"Education Indonesia" is a brand of German-Indonesian Chamber of Industry and Commerce (EKONID)

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