Effective Rate of ITA 21 Applies, Employee Tax Revenue Increases 27% in January 2024

Friday, 23 February 2024

Effective Rate of ITA 21 Applies, Employee Tax Revenue Increases 27% in January 2024

JAKARTA. Employee tax revenue or Income Tax Article (ITA) 21 increased by 27% in January 2024, compared to the same period in 2023.

This increase occurred at the same time as the implementation of the ITA 21 calculation method using the Average Effective Rate (TER) method.

Previously, the provisions for the use of TER of ITA 21 were contained in Government Regulation Number 58 of 2023 and Minister of Finance Regulation (PMK) Number 168 of 2023.

In the regulation, the government applies the TER of ITA 21 for monthly and daily income. Monthly TERs are divided into three categories, Category A, Category B, and Category C based on the status of Non-Taxable Income (PTKP).

Read Also: PMK 168 Year 2023 Issued on the Technical Aspects of Income Tax Withholding for ITA 21: A Detailed Description

Minister of Finance Sri Mulyani revealed, that the increase in ITA 21 revenue reflects an improvement in the absorption of labor or wages and salaries paid by companies. "This is an encouraging trend," said Ms Indrawati, on Thursday (22/2).

In general, tax revenue in January 2024 contracted by 8% to IDR 149.25 trillion from the realization of revenue in the same period in 2023 which was recorded at IDR 162.24 trillion.

For other types of taxes, individual income tax revenue was recorded at IDR 0.5 trillion, corporate income tax at IDR 18.2 trillion, and domestic Value Added Tax (VAT) at IDR 35.60 trillion.

Then, ITA 22 on imports amounted to IDR 6.3 trillion, ITA 26 IDR 9.3 trillion, final income tax IDR 11.5 trillion and import VAT IDR 19.6 trillion. (ASP/KEN)


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