Government to Expand Government-borne Income Tax Article 21 Incentive

JAKARTA. Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government is preparing to broaden the scope of the Income Tax Article (ITA) 21 borne by the government (DTP) facility.

Previously, this incentive was available to employees in 56 industrial sectors earning up to IDR 10 million per month, as outlined in PMK No. 10 of 2025, effective since February 4, 2025.

Taxpayers can utilize this facility for the tax period January–December 2025. As reported by Bisnis.com, the government is considering extending the facility to additional industries, although this plan is still pending further discussion with President Prabowo Subianto.

"Hopefully, we can report this to the President next week," Airlangga stated in Jakarta on Friday (12/9).

For reference, income eligible for the government-borne Income Tax Article 21 includes monthly salary and fixed allowances, or other similar fixed and regular compensation. This income may be given under any name or in any form, including benefits in kind and/or other non-cash benefits.

A similar facility was previously provided during the Covid-19 pandemic as a fiscal stimulus for taxpayers. (ASP/KEN)