ABSTRACT
This paper aims to look into legal framework for promoting the rights of person with disabilities and propose incentives, in particular tax incentives namely tax deduction and tax deferral, to encourage private sector to implement obligations to recruit persons with disabilities or pay contribution to Person with Disability Foundation as contemplated in Law on Protection and Promotion of the Rights of Persons with Disabilities of 2009 so as to reduce person with disabilities’ dependence on the government to support their welfare.
Tax deduction scheme, which is more common and adopted by many countries, should be used to incentivize private sector to fulfill its recruitment obligation by allowing companies’ expense on salary paid to persons with disabilities be used to as 200% deductible expense and contribution made to Person with Disability Foundation added with other donation be qualified to receive tax deferral.