JAKARTA (Reuters) - Indonesia’s President Joko Widodo is considering cutting the corporate tax rate to 17 percent from 25 percent to match Singapore’s tax rate, he was quoted as saying on the cabinet secretary’s website on Wednesday.
“The thinking is simple. If Singapore’s corporate income tax is 17 percent and ours is 25 percent, everybody will go there,” Widodo told a tax amnesty roadshow on Tuesday night, according to the website.
The government is mulling whether to directly cut the current tariff to 17 percent or to do it in two stages, where the tariff is first lowered to 20 percent and then 17 percent, the website said.
Reporting by Gayatri Suroyo; Editing by Michael Perry