Changes to PPh 21 Tariffs in 2024: New Regulations, Calculation Examples, and Taxes
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The year 2024 marks a crucial period for Indonesia’s tax system with the adjustment of Article 21 Income Tax (PPh 21) deduction rates introduced by the Government through Government Regulation (PP) Number 58 of 2023. This change in the effective rates or TER creates a new foundation for taxpayers in paying taxes on income from employment, services, or activities. This article will delve deeper into the new regulations, types of effective rates, and provide examples of tax calculations for a better understanding.
New Regulations: Effective PPh 21 Rates
With the effective PPh 21 rates taking effect on January 1, 2024, taxpayers need to understand the implications and changes they face. There are two main categories in the effective rates, namely monthly TER and daily TER. Let’s further discuss each category.
Monthly TER applies to gross income received monthly within one tax period by individual taxpayers with permanent employee status. This type is further divided into three categories: TER A, TER B, and TER C.
- Monthly Effective Rate Category A (TER A): TER A applies to taxpayers with PTKP statuses: TK/0, TK/1, and K/0. The TER A PPh 21 rates start from 0% for monthly gross income up to Rp5.4 million and gradually increase to 34% for monthly gross income exceeding Rp1.4 billion. For example, for an unmarried individual without dependents (TK/0) with a monthly income of Rp8 million, the TER A PPh 21 calculation can be done using the effective rate for category A.
- Monthly Effective Rate Category B (TER B): TER B applies to taxpayers with PTKP statuses: TK/2, TK/3, K/1, and K/2. The TER B PPh 21 rates have a similar range, starting from 0% for monthly gross income up to Rp6.2 million and reaching 34% for monthly gross income exceeding Rp1.405 billion.
- Monthly Effective Rate Category C (TER C): TER C applies to taxpayers with PTKP status K/3. The TER C PPh 21 rates start from 0% for monthly gross income up to Rp6.6 million and reach 34% for monthly gross income exceeding Rp1.419 billion.
Meanwhile, daily TER is applied to non-permanent employees who receive daily, weekly, unit, or lump sum gross income. The effective daily PPh 21 rates have a specific structure, where a 0% rate is applied for income up to Rp450,000, and 0.5% for income above Rp450,000 up to Rp2.5 million. It is essential to note that weekly, unit, or lump sum incomes are calculated using the average daily income.
Example of Calculation
Let’s continue with an example of PPh 21 calculation to provide a clearer picture. Take, for instance, a permanent employee with PTKP TK/1 status with a monthly gross income of Rp8 million. By detailing the TER A effective monthly rate, we can calculate PPh 21 as follows:
- The effective TER A rate for an Rp8 million income is approximately 15%.
- PPh 21 Calculation: Rp8 million x 15% = Rp1.2 million.
Thus, the PPh 21 that must be paid by the employee is Rp1.2 million.
The changes to the PPh 21 rates in 2024 create a new framework for income tax payments in Indonesia. With a deep understanding of the effective rates in 2024, taxpayers can plan their finances more efficiently. This information is crucial for all relevant parties, including taxpayers and tax professionals, to follow the rules and fulfill tax obligations accurately.
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Kennard, 2024. “Perubahan Tarif Pemotongan PPh 21 Terbaru Tahun 2024: Tarif Efektif Hingga Contoh Perhitungan”. Pajakku.com. Available at: https://www.pajakku.com/read/399fbf5a-37d2-49b3-a19e-9b8a4e11a016/Perubahan-Tarif-Pemotongan-PPh-21-Terbaru-Tahun-2024:-Tarif-Efektif-Hingga-Contoh-Perhitungan-