The Jakarta Post - Tax incentives for non-profit organizations

The Jakarta Post - Tax incentives for non-profit organizations: "Tax incentives for non-profit organizations

Pahala Nainggolan, Jakarta

In the draft of new tax bill, the government introduced a long-awaited policy that allows taxpayers to record their donations as deductible expenses. Donations given for national catastrophes and for community and social development will be accounted for as expenses from a tax point of view. Thus the more donations that one gives will be that much less tax paid. Currently, donations for social activities are treated as non-tax deductible expenses. It means that for each donation, on top of it, 30 percent must be added for government as a tax payment. This discourages people's charity and social solidarity."