Abstract:

The emergence of the industrial revolution namely the Industrial Revolution 4.0. The era of the Industrial Revolution 4.0 gave rise to increasingly fierce global competition. One way to improve competitiveness is to encourage the pace of innovation. Research and development is the most important process in creating innovation. The innovation and creativity of every business actor in Indonesia must always be appreciated and supported. One of them is government support through tax incentives. This research used a qualitative approach research method with qualitative data analysis techniques. Data collection techniques used in this research are literature study and field study. The tax treatment of research and development costs in Indonesia, China and Malaysia is used as a basis for comparison to determine the design of Income Tax incentive policies on research and development costs in the face of the Industrial Revolution 4.0. The results of this research explain that after a comparison, Indonesia with China and Malaysia have significant differences, Indonesia still has not provided super deduction tax incentives. The policy design that can be given from the results of the comparison is to provide super deduction tax incentives for the research and development costs. Furthermore, this research is also expected to provide input to the Directorate General of Tax and Fiscal Policy Agency as a policy maker to provide tax incentives in the form of super deduction in order to encourage businesses in Indonesia to conduct research and development.