{"id":22308,"date":"2024-01-05T17:26:12","date_gmt":"2024-01-05T10:26:12","guid":{"rendered":"https:\/\/www.humanica.com\/?p=22308"},"modified":"2026-10-26T14:20:08","modified_gmt":"2026-10-26T07:20:08","slug":"pph21-update-ter","status":"publish","type":"post","link":"https:\/\/www.humanica.com\/en\/pph21-update-ter\/","title":{"rendered":"An Overview of Indonesia\u2019s Income Tax (PPh21) Regulations Updates"},"content":{"rendered":"

In late 2023, the government introduced Peraturan Pemerintah (PP) 58\/2023, marking a crucial update focused on simplifying the calculation of the effective rate for withholding PPh 21 or Income Tax Article 21. PPh 21 is a tax category applied to various forms of income, including salaries, wages, honoraria, allowances, and other payments received by employees.<\/p>\n

This modification addresses the necessity for a more streamlined process, as the previous formula was considered excessively complex and susceptible to errors.<\/p>\n

Key Changes in PPh21 Calculation<\/h2>\n

The core of the update centers around the implementation of the Tarif Efektif Rata-rata (TER) or average effective rate. TER serves as the percentage rate used to calculate PPh21 for each taxpayer, with variations based on their PTKP (non-taxable income) status and gross salary. So, under the new PP regulations, PPh21 is now calculated solely by multiplying the taxpayer\u2019s gross income by their respective TER.<\/p>\n

Shortly after this update, PMK 168\/2023 was issued. This document serves as a detailed guide, explaining and clarifying how PP 58\/2023 should be put into practice.<\/p>\n

Concerning the new tax calculation, the next question is: how do I know my TER rate? Let\u2019s delve deeper into it!<\/p>\n

Understanding TER<\/h2>\n

TER is categorized into two types: Monthly TER and Daily TER, determined by the taxpayer\u2019s employment type.<\/p>\n

Exploring Monthly TER<\/h4>\n

Monthly TER is applied to permanent or full-time employees receiving a monthly income. The system categorizes taxpayers into three groups based on their PTKP Status, which are listed below.<\/p>\n

<\/figure>\n

Moreover, the TER rate varies within each category depending on the taxpayer\u2019s gross monthly salary. Here is a comprehensive list of the Monthly TER rates:<\/p>\n

\"Table<\/figure>\n

Exploring Daily TER<\/h4>\n

Daily TER, on the other hand, caters to freelancers with daily income. The TER rate in this category is categorized as follows:<\/p>\n

\"PPh21<\/figure>\n

Determining Your PPh 21<\/a><\/h2>\n

As previously mentioned, the latest regulation was crafted to streamline the calculation of PPh 21. To calculate your PPh 21, use the following updated formula:<\/p>\n

\"PPh21<\/figure>\n

Daily Worker Employee<\/h3>\n