DJP Says TER PPh 21 Complaints Largely Resolved, Review Planned

The Directorate General of Taxes (DJP) said on 26 October 2025 in Jakarta that taxpayer complaints about calculating and withholding Income Tax Article 21 using the effective average rate (TER) scheme have been reduced. The comment was made by Tax Director Bimo Wijayanto.

Previously some taxpayers, such as doctors, were confused because PPh 21 withholding was usually performed at the start of the fiscal year. The TER scheme spreads the withholding to a monthly or daily basis, easing the timing burden. The policy has been in effect since 1 January 2024 and is slated to run for two years.

DJP will review the TER’s effectiveness at year‑end to decide on the policy’s future. TER is governed by Government Regulation (PP) 58/2023 and Ministerial Regulation (PMK) 168/2023, which define monthly rates in categories A‑C and a daily rate for non‑permanent staff earning up to Rp2.5 million per day. The assessment will affect how taxpayers and businesses compute PPh 21 withholding.