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

JAKARTA. 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.

This was conveyed by the tax authority in its thread uploaded on social media account X. In the upload, the DGT also explained various models and calculation simulations using the TER of ITA 21.

Provisions regarding the use of the TER formula for ITA 21 were previously contained in Government Regulation (PP) Number 68 of 2023. Meanwhile, the provisions of its implementation guidelines are contained in Minister of Finance Regulation (PMK) Number 168 of 2023.

In the simulation, the DGT compared the calculation of ITA 21 payable using the old scheme, which entirely refers to Article 17 of the Income Tax Law (UU), with the TER scheme, for income of IDR 15 million and 20 million.

The Same Calculation Result

After simulation, the amount of income tax payable for each nominal income using the two calculation schemes remains the same.

"It can be concluded that at the end of the year, the ITA 21 payable remains the same amount, between when the TER comes into effect and before the TER comes into effect," said the DGT in one of its uploads.

However, from the simulation results using TER of ITA 21, it can be seen that the Income Tax payable in December is greater than the monthly ITA 21 payable before the enactment of TER.

However, the DGT also stated that the condition could be the opposite, namely ITA 21 payable in December was smaller than the ITA 21 payable before the TER took effect. (ASP/KEN)