Tax-Borne Incentive: Tourism Workers to Receive Additional Income

JAKARTA. The government will expand the provision of Government-Borne Income Tax Article 21 facilities to cover employees in the tourism sector. Previously, this facility was only available to employees in labor-intensive industries.

This means taxpayers working in tourism-related sectors will see an increase in their take-home pay, as the Income Tax Article (ITA) 21 that they normally pay will be borne by the government.

The expansion is part of the economic policy packages launched by the government on Monday (15/9) in Jakarta. It aims to drive economic growth by boosting people’s purchasing power.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government-borne ITA 21 applies to employees with a maximum salary of IDR 10 million per month.

Budget Allocation for Government-borne ITA 21

The facility will apply for 2025 and 2026, with budget allocations of IDR 120 billion in 2025 and IDR 480 billion in 2026.

The allocation for 2025 is lower than in 2026 because it will only apply for three months. In contrast, in 2026 it will be granted for the full year. The government estimates that this facility will benefit 552,000 workers.

The provisions regarding Government-Borne Income Tax Article 21 were previously regulated under Minister of Finance Regulation (PMK) No. 10 of 2025 (PMK 10/2025).

According to the regulation, eligible employees must not only earn a maximum salary of IDR 10 million, but also have a Taxpayer Identification Number (TIN) or a National Identity Number (NIK) already integrated with the Directorate General of Taxes’ administration system.

In addition, employees must not be receiving other government-borne ITA 21 incentives. (ASP/KEN)