New Income Tax Article 21
Jan 10
The Indonesian government is taking important steps in making adjustments to the calculation of Income Tax Article 21 (“PPh 21”) in 2024. Through the issuance of Government Regulation (PP) no. 58 year 2023, the calculation of Income Tax Article 21 will use the calculation method based on an effective rate called “TER”. This update aims to provide convenience and simplicity in the technical calculation and administration.
In general, the annual calculation is the same as the previous calculation method. The difference is in the monthly calculation, which is by multiplying the net income per month after deducting Non-Taxable Income ("PTKP") with an effective rate called "TER "which varies according to the amount of income per month. This calculation is carried out from January to November. In December, an adjustment calculation is carried out, which is by subtracting the annual calculation amount with the accumulated amount from January to November.
Let's apply this new tax calculation!
