Question 1

What is PPh 21 in Indonesia?

Accepted Answer

PPh 21 is the Indonesian income tax on employment-related earnings. It applies to salaries, wages, honoraria, allowances, and other payments related to employment. Employers are responsible for withholding and remitting PPh 21 on behalf of their employees.

Question 2

How is PPh 21 calculated?

Accepted Answer

PPh 21 is calculated based on annual taxable income after deducting occupational expenses (5% of gross income, max IDR 6 million/year) and PTKP (non-taxable income threshold). The progressive tax rates range from 5% to 35% depending on the income bracket.

Question 3

What is PTKP?

Accepted Answer

PTKP (Penghasilan Tidak Kena Pajak) is the non-taxable income threshold in Indonesia. The basic PTKP amount varies based on marital status and number of dependents. As of 2025, the basic PTKP is IDR 54,000,000 per year for a single individual.

Question 4

What are the current Indonesian income tax brackets?

Accepted Answer

The current tax brackets are: 5% for income up to IDR 60 million, 15% for IDR 60-250 million, 25% for IDR 250-500 million, 30% for IDR 500 million to IDR 5 billion, and 35% for income above IDR 5 billion.

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Frequently Asked Questions

What is PPh 21 in Indonesia?

How is PPh 21 calculated?

What is PTKP?

What are the current Indonesian income tax brackets?

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