Income Tax Article 21 Borne by the Government for Interns in 2026: Allowance Received in Full Without Tax Deduction
JAKARTA. Internship allowances can now be received in full without any tax deduction. This follows the issuance of PMK Number 6 of 2026, which stipulates that Income Tax Article (ITA) 21 on income received by internship participants who are university graduates will be borne by the government (DTP) for the 2026 fiscal year.
The policy is part of the government’s effort to enhance competencies while also helping fresh graduates gain work experience through internship programs organized in accordance with the regulations of the Ministry of Manpower of the Republic of Indonesia.
Through this incentive, interns no longer need to worry about their income being reduced by tax deductions, allowing them to fully utilize the allowance they receive during the internship program.
Paid Internships Are Subject to ITA 21, but the Tax May Be Borne by the Government
Under tax regulations, income received from internship programs constitutes an Income Tax Article (ITA) 21 object. This means that internship allowances or similar compensation are generally subject to tax in the same way as employee income, although the calculation scheme differs.
For government internship programs, the tax withholder is the government institution that pays the income. Specifically for this program, the tax is paid and borne by the government, allowing interns to receive their income in full.
Income subject to ITA 21 borne by the government includes:
- Internship allowances or similar compensation,
- Employment social security contributions paid by the government, and
- Any other income, regardless of name or form, paid by the government to internship participants.
Effective from October 2025 to December 2026
The government-borne ITA 21 incentive applies to the Tax Period from October 2025 to December 2026. The tax is still calculated when the income payment is made, and the incentive is paid in cash to the participants at the same time. Since the tax is borne by the government, internship participants continue to receive their allowance in full without any ITA 21 deduction.
For the ITA 21 to be borne by the government, internship participants must meet the following criteria:
- Possess a Taxpayer Identification Number (NPWP) or National Identification Number (NIK) registered in the Coretax system,
- Be registered as participants in a university graduate internship program in accordance with government regulations, and
- Not receive any other ITA 21 DTP incentives.
Are Internship Participants Required to File an Annual Tax Return?
Although they have received income, internship participants who meet certain taxpayer criteria may be exempt from the obligation to file an Individual Annual Income Tax Return (SPT), particularly if their total annual income does not exceed the Non-Taxable Income threshold (PTKP).
However, internship participants may still file an SPT voluntarily. It should be noted that if an overpayment status arises due to tax credits from government-borne ITA 21, the excess amount is not considered an overpayment of tax and cannot be refunded. (RMN/KEN)
