Effective Tariff For PPh 21 Valid January 2024, DGT Reveals No Additional Tax Burden

Illustration (Special)

JAKARTA - The government through the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) issued Government Regulation Number 58 of 2023 concerning Tax Cut Tariffs for Income Tax Article 21 on Income with respect to Work, Services, or Private Taxpayer Activities which was promulgated on December 27, 2023.

Director of Counseling, Services and Public Relations Dwi Astuti said this rule aims to provide convenience in calculating outstanding taxes.

This convenience 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 fees, and Non-Taxable Income (PTKP) from gross income," he explained in his official statement quoted December 31.

According to Dwi, the results have only been multiplied by the tariff of Article 17 of the PPh Law. With this PP, the calculation of outstanding taxes is sufficient by multiplying gross income at an effective rate.

Dwi continued that there was no additional new tax burden in connection with the implementation of effective tariffs.

"The application 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 PPh Article 21 a year in the Last Tax Period still uses the tariff of Article 17 paragraph (1) letter a of the PPh Law as stipulated at this time," he said.

Meanwhile, DGT is preparing a tool that will help in facilitating the calculation of PPh article 21, which can be accessed through DJPOnline starting in January 2024.

Dwi continued that the government will regulate further provisions in the Minister of Finance Regulation which is currently in the final stage of the preparation process.

The full provisions can be seen in a copy of Government Regulation Number 58 of 2023 concerning Tax Cut Rates for Income Taxes Article 21 on Income with respect to Work, Services, or Taxpayer Activities for Private People who are promulgated.