Non-Taxable Income: Control And The Nominal Amount

Tax illustration (Kelly Sikkema on Unsplash)

YOGYAKARTA The Indonesian government imposes taxes for individual income. However, not everyone who earns income is required to pay taxes. Non-taxable income is called Non-Taxable Income (PTKP).

Regarding Non-Taxable Income (PTKP), it is contained in Law Number 36 of 2008 concerning income taxes. It says that Non-Taxable Income (PTKP) is an income that becomes a reference for calculating Income Tax (PPh).

The rules regarding PTKP are contained in Article 7 of Law Number 7 of 1983 concerning income taxes. It states that PTKP is a component that reduces the net income of domestic taxpayers to find out the amount of income in taxable income (PKP).

Please note, the net in the rules above is the result of deducting the allowed income such as position fees, pension contributions and BPJS contributions. While the understanding of Taxable Income (PKP) is the amount of income that is used as the basis for calculating income taxes.

A person who has a monthly income but the amount does not reach the PTKP threshold, the person is not obliged to pay taxes. However, taxpayers still have to report their Annual Notification Letter (SPT) on Income Taxes.

Based on the provisions of Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP), currently the PTKP limit for personal people is an accumulation of IDR 54 million in one year. This is also the same as the PTKP amount regulated in the Income Tax Law (UU PPh).

This means that a person who earns a net income of less than IDR 4.5 million per month is included in the category of non-effective taxpayers (WP NE).

For someone who has a gross income of more than IDR 54 million a year, the amount of PTKP is done by reducing from total gross income which then generates the amount of taxable income (PKP). The PKP is subject to a tax as well as the basis for calculating the PPh.

Quoted from www.pajak.go.id, the amount of a person's PTKP is determined from the taxpayer's status at the beginning of the tax year in question.

The provisions of PTKP for employees have been regulated in PMK No. 102/PMK.010/2016, namely as follows.

It should be noted that taxpayers who bear family members are blood and will receive a maximum of 3 additional PTKP.

The criteria for family members who are covered are members who have absolutely no income so that their living expenses are borne by taxpayers.

This means that someone who has many family members and bears them fully, the bigger the PTKP that is obtained so that the PKP that must be paid by the taxpayer can be smaller.

That's information related to non-taxable income or PTKP. To get other interesting information, visit VOI.ID either through websites or social media.