#Effective Income Tax Article 21 Rate

Urgency of Tax Simplification for Internship Programs

This article discusses the importance of simplifying tax rules for internship programs in Indonesia. Currently, the Income Tax scheme applied to internship stipends is considered a burden for both companies and interns. The government is advised to adjust the rules by incorporating a Non-Taxable Income (PTKP) limit to encourage participation and reduce the risk of tax disputes.

Nov 12, 2025

DGT: Income Tax Article 21 Effective Rate Scheme Under Evaluation

The Directorate General of Taxes (DGT) is currently evaluating the Average Effective Rate (TER) scheme for Income Tax Article (ITA) 21 under Regulation PMK 168/2023, which was introduced to simplify employee income tax calculations.

Oct 10, 2025

How to Calculate Income Tax Article 21 for Permanent Employees in December

Since the implementation of the Average Effective Rate (TER) regulation, the calculation of Income Tax Article (ITA) 21 in December differs from the previous 11 months. This is because it must account for the annual tax liability and the ITA 21 deductions made from January to November.

Dec 24, 2024

Are Eid Hampers Taxable?

Exchanging gifts, or what is now popularly known as hampers, ahead of Eid al-Fitr is a long-standing tradition for many Indonesians. So, what are the tax regulations regarding this gift?

Apr 6, 2024

Effective Rate of ITA 21 Applies, Employee Tax Revenue Increases 27% in January 2024

Employee tax revenue or Income Tax Article (ITA) 21 increased by 27% in January 2024, compared to the same period in 2023. This increase occurred at the same time as the implementation of the ITA 21 calculation method using the Average Effective Rate (TER) method.

Feb 23, 2024

MUC-Suryacipta Hosts a Hybrid Seminar on Income Tax 21 Provisions. Check Out the Registration Info!

MUC Consulting once again collaborated with the management of an industrial estate in Karawang, PT Suryacipta Swadaya, to organize a seminar themed "Implication of the Use of Effective Rate of Income Tax Article 21 in Government Regulation No. 58 Year 2023".

Feb 19, 2024

DGT Affirms, Effective Rate of Income Tax 21 is Not a New Tax Type

The Directorate General of Taxes (DGT) asserts that the provision regarding the effective rate (TER) of Income Tax Article (ITA) 21 is not a type of tax and does not add a new tax burden.

Jan 30, 2024

PMK 168 Year 2023 Issued on the Technical Aspects of Income Tax Withholding for ITA 21: A Detailed Description

Jan 23, 2024

DGT Prepares Calculation Tool for ITA 21 Based on ETR

The Directorate General of Taxes (DGT) will prepare a tool to calculate Income Tax Article (ITA) 21 using the effective tax rate (ETR) which was previously stipulated in Government Regulation (PP) Number 58 of 2023.

Jan 2, 2024

Effective 1 January 2024, Regulation on the Use of Effective Rates of ITA 21 Released

Effective from 1 January 2024, the government ensures that the formula for calculating Income Tax Article (ITA) 21 can use the Effective Tax Rate (ETR), as stated in Government Regulation Number 58 Year 2023. 

Jan 1, 2024