JAKARTA - Minister of Finance Purbaya Yudhi Sadewa stated that tax policy was carried out fairly, in response to the spotlight on the tax deduction for holiday allowances (THR) for employees in the private sector.
"We will run a tax that is fair enough," said Purbaya in a media briefing at the Ministry of Finance Jakarta office, Friday, March 6, reported by ANTARA.
Purbaya explained that the THR tax policy for civil servants (ASN) is borne by the government because they work in government agencies.
Therefore, for employees in the private sector, Purbaya recommends conveying aspirations to the respective company leaders.
"For ASN, it is borne by the boss (government). So, if the private sector protests, protest to the boss," he added.
The Minister of Finance also questioned the potential for changes in policies related to the THR tax borne by the government for the private sector.
"It's hard for us to change this partial regulation to meet one party alone," he said.
On the same occasion, Director General of Taxes Bimo Wijayanto added that private employees have their own allowance facilities which are regulated by each company.
Bimo also stated that there was no effect on the implementation of the average effective tariff (TER) on tax deductions. Because, the implementation of TER is aimed at distributing the tax burden to each month, not changing the amount of tax payment.
"Actually there is no problem, it actually makes it easier for taxpayers to divide the burden per month," said Bimo.
Meanwhile, THR is part of employee income which is included in the object of Income Tax Article 21.
Based on Government Regulation (PP) Number 58 of 2023, the calculation of tax deductions for THR uses an average effective tariff (TER) mechanism which is divided into three categories, namely monthly TER A, monthly TER B, and monthly TER C.
Grouping is based on the amount of Non-Taxable Income (PTKP) according to marital status and the number of dependents of the taxpayer.
The tariffs imposed on each category range from 0 percent to 34 percent, and depend on the amount of monthly income received.
The rules regarding the THR tax are not regulated in a separate article, but follow the hierarchy of tax regulations that apply in Indonesia.
Meanwhile, there are special provisions for state civil servants (ASN), TNI and Polri.
Through Government Regulation Number 14 of 2024 and its updates in 2025 and 2026, the Income Tax (PPh) on THR and the 13th salary for ASN is borne by the government.
Thus, ASN receives THR in full without tax deductions from personal income.
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