PPh 21 for Permanent Employees Resigning Within Tax Year

PMK No.168/2023 sets the rules for calculating PPh 21 for permanent employees who resign during the tax year. For instance, Mr. Dandi left PT Z on 1 September 2024 after earning IDR 18 million per month.

When the employee’s subjective tax liability does not cease, PPh 21 is computed monthly using the effective rate (TER) based on the PTKP, without annualizing income. At PT Z the TER for category A (TK/0) is 8 %, while after moving to PT XY the rate rises to 9 %. The withholding is applied proportionally to the months worked in the tax year.

The employer must refund any excess withholding and submit the BPA1 form no later than the end of the following month. Mr. Dandi should transfer the BPA1 received from PT Z to PT XY so the December 2024 PPh 21 is calculated correctly.