ABSTRACT
This paper seeks to analyze the benefits of incentives that are most desired by investors. This study focuses to find the most attractive incentive benefits and to propose an efficient procedure in applying corporate income tax incentives. First, interviews were conducted with experts to get their views on the benefits of tax incentives in Indonesia. Furthermore, a survey was conducted on potential investors in manufacturing companies. An Analytic Hierarchy Process (AHP) was conducted to determine which fiscal benefit incentives were the most attractive one for investors. It was found out that corporate income tax exemption for a certain period was the most attractive benefit for investors. Extension of tax loss carried forward is attractive to manufacturing companies because it can be fully utilized at the beginning of the company's operations. This study contributes to providing an initial input regarding the formulation of well-targeted incentives.
