The government exempted taxes on the capital participation of venture capital firms to boost the digital business, but players also wanted incentives on earnings from stock sales.Key summary points
- The new Regulation of the Minister of Finance No. 48/2018 provides an exemption from income tax (PPh) on venture capital participation.
- Earnings obtained by venture capital firms in the form of profits from their business partners are not an object of income tax.
- There is also a requirement that the net sell value of the business partners must not exceed Rp 50 billion per year.