Tax Director Reviews Average Effective Rate for PPh 21

Indonesia's Tax Directorate is currently reviewing the effectiveness of the average effective rate (TER) used for withholding PPh Article 21. Director General of Taxes Bimo Wijayanto said the policy has been in force for more than one and a half years.

The assessment is being carried out together with the Directorate General of Economic and Fiscal Strategy of the Finance Ministry to ensure the mechanism works efficiently. Bimo hopes the review will lead to a more accurate and streamlined withholding process.

TER, regulated by Government Regulation 58/2023 and Ministerial Decree 168/2023, includes monthly and daily effective rates, with monthly categories based on taxable income, marital status and dependents. It has applied since 1 January 2024 for employees, officials, civil servants, military, police and pensioners. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814511/evaluasi-tarif-efektif-rata-rata-pph-pasal-21-ini-kata-dirjen-pajak).