The super tax deduction program is open to all industries in Indonesia with certain competencies. Companies that have successfully registered for this program can enjoy the 100% tax deduction for the provision of education, on the job practices, or internships. However, to claim the super tax deduction, there are 4 main requirements that must be met by the industry in order to get the 200% super tax deduction. These requirements are:

1. The industry has been and is currently conducting education, on the job practice, or an internship in the competencies specified in Minister of Finance Regulation (PMK) No. 128/2019;

2. The industry has established a Cooperation Agreement with the vocational institutions that is officially signed by both sides;

3. The industry is not experiencing a fiscal loss; and

4. The industry submits a Fiscal Certificate (SKF) from the Directorate General of Taxes.

The submission of this Fiscal Certificate must meet the administrative requirements in the form of attaching an Annual Tax Return (SPT) for the last two years and a Periodic Value Added Tax (PPN) Tax Return. In addition, taxpayers must not be in a condition of being tax indebted and is free from any legal charges in the field of tax and/or money laundering.

If all the requirements are met, registration can be done online anytime through the Online System Submission (OSS) on the website www.oss.go.id. Additionally, there is also an offline registration mechanism in the format listed in Article 7 Paragraph (3) of PMK No. 128/2019. If the application is approved, a notification in the taxpayer's OSS account will appear.

Once approved, the company must submit an annual activity cost report in a predetermined format. It is possible that the taxpayer will not be given the full 200% deduction as there are specific requirements to meet the maximum deduction. This is determined via an evaluation on the effectiveness of the tax incentives by ministries and/or agencies. In other words, companies must also show their willingness to commit in carrying out the program.

As an Industry partner, EKONID is ready to help and provide consultation for all partners regarding the 200% Super Tax Deduction application process, starting from the creation of the Cooperation Agreements with vocational institutions, providing data and material for the provision of education and on the job practices, as well as completion of other documents.