PEMBERIAN INSENTIF PPH ATAS KEGIATAN LITBANG UNTUK PENINGKATAN INOVASI DI INDONESIA

Abstract

Innovation has a role to recognize a central driver of economic growth and development even in country
level. The governments are now focusing on innovation ranking as part of their economic policy strategies.
Economic fund the innovation progress to develop better nation and harmonize cooperation among the
countries. In this part, income tax incentives give a significant role for improving innovation through
research and development. However, the government commitment to support the innovation through
research and development is limited compare with the other countries. Therefore, Indonesia launched
regulation number 45 year 2019 ( Peraturan Pemerintah-PP Nomor 45 tahun 2019) about allocate the
income tax incentives for research and development. The paper addressed issue on PP Nomor 45 tahun
2019 implementation in Indonesia and how far this regulation is needed. Global Innovation and Research
Development theory and Income Tax Review are the major theory used. It conducted in Qualitative Method
by using primary and secondary data. As a Result PP number 45 year 2019 is feasible to implement in
Indonesia but there are several supporting regulation to give more clear information especially in verse 29
C about income deduction from gross income for certain RnD in Indonesia.