Regarding Effective Tax Tariffs Article 21, DGT Says No New Tax Burden

The Directorate General of Taxes (DGT) of the Ministry of Finance stated that the effective tariff for calculating Income Tax (PPh) Article 21 does not provide a new tax burden.

"There is no additional new tax burden in connection with the implementation of effective tariffs," said Director of Counseling, Services and Public Relations Dwi Astuti quoting Antara.

The rules regarding the renewal of the effective tariff for calculating PPh 21 are contained in Government Regulation Number 58 of 2023 concerning Tax Cut Tariffs for Income Taxes Article 21 on Income with respect to Work, Services, or Individual Taxpayer Activities.

The purpose of issuing the PP is to provide convenience in calculating outstanding taxes.

According to Dwi, this facility is reflected in the simplicity of how the tax calculation is payable.

Previously, to determine the tax owed, employers had to reduce the cost of office, pension fees, pension contributions, and Non-Taxable Income (PTKP) from gross income. The result was only multiplied by the tariff of Article 17 of the PPh Law.

With this PP, the calculation of the outstanding tax is sufficient by multiplying gross income at an effective rate.

"The implementation of monthly effective rates for Permanent Employees is only used in calculating Article 21 of the PPh for the tax period other than the Last Tax Period, while the calculation of Article 21 of the Tax Period in the Last Tax Period continues to use the tariff of Article 17 paragraph (1) letter a of the PPh Law as stipulated at this time," explained Dwi.

Dwi said DGT is currently preparing a tool that will help in facilitating the calculation of PPh article 21. The tool is targeted to be accessed through DJPOnline starting January 2024.

"Furthermore, the government will regulate further provisions in the Minister of Finance Regulation which is currently in the final stage of the preparation process," said Dwi.