#Income Tax Article 21

NPPN Determines the Tax Scheme for Individual Taxpayers, Do Not Miss the 31 March Reporting Deadline

The DGT reminds individual taxpayers with gross turnover below Rp4.8 billion to submit a notification for the use of the Norms to Calculate Net Income (NPPN) through the DGT Coretax no later than 31 March 2026. If submitted late, taxpayers will be deemed to have chosen bookkeeping. Check the eligibility criteria, the legal basis under PMK 81/2024, and the submission procedure. 

Feb 25, 2026

Income Tax Article 21 Borne by the Government for Interns in 2026: Allowance Received in Full Without Tax Deduction

The Income Tax Article (ITA) 21 borne by the government (DTP) for interns in 2026 officially takes effect under the Minister of Finance Regulation (PMK) Number 6 of 2026. Internship allowances will be received in full without tax deductions from October 2025 to December 2026. Below are the provisions, eligibility criteria, and annual tax return (SPT) reporting obligations for internship participants who are university graduates.

Feb 23, 2026

Workers Earning up to IDR 10 Million Exempt from Income Tax Article 21 Throughout 2026: Here Are the Conditions!

Workers earning up to IDR 10 million per month are exempt from Income Tax Article (ITA) 21 throughout 2026. Read on for the eligibility requirements, covered business sectors, and tax incentive provisions under Minister of Finance Regulation (PMK) No. 105 of 2025.

Jan 5, 2026

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

Constitutional Court Declines Judicial Review on Income Tax on Pension & Severance

The Constitutional Court rejected the judicial review of Income Tax on pensions and severance pay because the petition was deemed unclear and inconsistent in citing the relevant legal provisions.

Oct 31, 2025

Income Tax Article 21 Incentive Officially Extended to Tourism Sector Workers

The government has officially expanded the Government-Borne Income Tax Article (ITA) 21 facility to cover the tourism sector, under Minister of Finance Regulation (PMK) No. 72/2025, as part of efforts to stimulate economic growth and job creation.

Oct 30, 2025

Reviewing the Tax Rules on Pension Payments

Retirement benefits and severance pay could become tax-exempt if the judicial review of the Income Tax Law is approved. Learn the rules of Income Tax Article (ITA) 21, its rates, and the obligations of the withholding party.

Oct 27, 2025

Severance and Pension Tax Rules Challenged at the Constitutional Court

Two taxpayers have filed a judicial review with the Constitutional Court, challenging the Income Tax Article (ITA) 21 provisions on severance pay and pensions, arguing that they are unfair and unconstitutional.

Oct 10, 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

Tax-Borne Incentive: Tourism Workers to Receive Additional Income

The government is expanding the Government-borne (DTP) Income Tax Article 21 facility to employees in the tourism sector with a maximum salary of IDR 10 million per month. Effective from 2025 to 2026, this incentive is budgeted at IDR 120 billion in 2025 and IDR 480 billion in 2026, targeting 552 thousand workers.

Sep 16, 2025

Government to Expand Government-borne Income Tax Article 21 Incentive

The government plans to expand the Income Tax Article 21 Borne by the Government (DTP) incentive in accordance with Minister of Finance Regulation (PMK) No. 10/2025. This expansion will increase the number of eligible industries and will apply to the tax period from January to December 2025.

Sep 12, 2025

Fairer Distribution: Government Eyes Domicile-Based Income Tax Article 21

The government will change the income tax article 21 revenue-sharing scheme from being based on the company’s location to the employee’s domicile. This step is considered fairer and provides direct benefits to the regions where the workers live.

Sep 4, 2025

It's Official: Government to Cover Income Tax for Employees Earning Below IDR 10 Million, Check the Requirements!

The government officially covers Income Tax Article (ITA) 21 for employees earning up to IDR 10 million in labor-intensive sectors, as stipulated in PMK 10/2025. Check the requirements here!

Feb 28, 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

DGT Releases Nominative List Format for BiK/Fringe Benefits, Here are the Details

Aug 27, 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

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

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

Government Waives Employee Income Tax at IKN

To encourage the project of relocating the national capital, the Government exempts employee Income Tax  Article (ITA) 21 in the Nusantara Capital City (IKN)

Dec 4, 2023