On September 6, 2019, the Minister of Finance issued Minister of Finance Regulation No. 128/2019 on the Granting of Gross Income Reductions for the Implementation of Work Practice, Apprenticeship and / or Learning Activities in the Context of Guidance and Development of Human Resources Based on Certain Competencies. This program, which is commonly called Super Tax Deduction aims to encourage industries to invest in human resource education and training through vocational schools.

The program effectively widens the opportunities for vocational schools to become industry partners and improve education standards and graduates. In turn, the government wants to provide local workers that meet the need of highly qualified labor.

Via the regulation, the government can provide tax incentives of up to 200% for companies that actively hold programs for vocational education through education, training or apprenticeship. This reduction in gross income of up to a maximum of 200% is obtained from a 100% reduction in gross income from the amount of costs incurred for learning or on job practice and an additional incentive of up to 100% from a reduction in gross income from the amount of costs incurred. The costs in question are the costs incurred from the following aspects:

1.    Provision of special physical facilities;

2.    Instructor or tutor fees;

3.    Goods and / or materials;

4.    Honorarium or similar; and

5.    Competency certification costs.

To gain the benefits of super tax deduction, taxpayers must be domestic companies that have cooperation agreements with vocational schools in the form of education, training, or work practices in one or several of a total of 453 specified competencies. In acknowledgment of the benefits of the Super Tax Deduction program, EKONID's GDVET program can also assist its partners in obtaining the super tax deduction.