What is PPh 21?
Employee income tax: scope, withholders, and tax base.
PPh 21 (Pajak Penghasilan Pasal 21) is the Indonesian income tax on work, services or activities performed by a resident individual taxpayer. The most common application: employee salaries.
Employers must withhold PPh 21 from employee compensation monthly and remit it to the state treasury — employees do not pay it themselves.
Who withholds, who is withheld
| Withholder | Withheld from |
|---|---|
| Employers (corporates, SMEs) | Permanent, non-permanent, and non-employee workers |
| Government treasurer | Civil servants, military/police, pensioners |
| Event organisers | Event participants (competitions, seminars) |
Current regulatory basis
- 2021UU HPP — Law 7/2021 (Harmonisation of Tax Regulations): new 5–35% progressive brackets
- 2023PP 58/2023 — Effective Average Tariff (TER) monthly scheme, categories A/B/C
- Every DecemberAnnual progressive settlement replaces the December TER computation
From January 2024, monthly PPh 21 uses the TER scheme rather than annual tax divided by 12.
Progressive annual brackets (UU HPP)
| Taxable income layer (PKP) | Rate |
|---|---|
| Up to Rp 60 million | 5% |
| Rp 60m – 250m | 15% |
| Rp 250m – 500m | 25% |
| Rp 500m – 5 billion | 30% |
| > Rp 5 billion | 35% |
These brackets apply to:
- December settlement
- Annual individual SPT (1770)
- A non-NPWP individual → +20% penalty rate
PTKP (non-taxable income threshold)
| Status | Annual PTKP |
|---|---|
| TK/0 (single) | Rp 54,000,000 |
| K/0 (married) | Rp 58,500,000 |
| K/1 (married + 1 dependent) | Rp 63,000,000 |
| K/2 | Rp 67,500,000 |
| K/3 | Rp 72,000,000 |
How esaFiskaly computes it
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Capture NIK, NPWP (if any), PTKP status, base salary, allowances, BPJS.
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The Payroll module computes PPh 21 using TER for Jan–Nov.
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In December the system runs annual progressive calculation and reconciles the final PPh 21 amount (refund or top-up).
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Output Bukti Potong & SPT
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A PPh 21 Bukti Potong is issued per employee automatically. The PPh 21 Monthly SPT summary is available in the SPT module.