Govt Expands PPh 21 DTP Incentive to Hotel and Tourism

JAKARTA – The government, through Treasury Regulation (PMK) No 72/2025, expands the coverage of the tax‑free PPh Article 21 incentive (DTP) to hotels, restaurants, cafés and tourism businesses. The incentive applies to both permanent and non‑permanent employees who meet specific criteria. The announcement was made on 30 October 2025.

Under the DTP scheme, the government bears the income‑tax burden, increasing employees’ take‑home pay by roughly Rp400,000‑Rp600,000 (about $27‑$40) per month. Eligible permanent staff must earn a gross income not exceeding Rp10 million and have an integrated tax ID (NPWP) and population ID (NIK); non‑permanent staff qualify if their average daily wage does not exceed Rp500,000.

The measure aims to boost consumer purchasing power and sustain tourism‑related consumption, supporting national economic growth. Officials view the incentive as a key component of the year‑end stimulus package to accelerate recovery.