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Unilever unit snags tax holiday in Indonesia

The Indonesian government has awarded a tax holiday to Unilever Oleokimia Indonesia, a subsidiary of consumer goods maker Unilever Indonesia, a senior Finance Ministry official said last week.

In effect since 15 Aug. 2011, a government regulation stipulates that any company intending to invest IDR1 trillion (USD115 million) or more and that deals in base metals, machinery or telecommunications equipment, or in pioneering industries such as oil refining, petrochemicals and renewable energy, would be eligible for a tax holiday.

Eligibility for a tax holiday – the exemption of income tax dues for a certain period of time – extends to both local and foreign firms. The finance minister has a right to offer the exemption to companies viewed as having strategic value to the country’s economy, the decree said.

(Source: Jakarta Globe )