Govt Extends PPh 21 DTP to Nightclubs, Karaoke, Massage

JAKARTA – The Ministry of Finance, via Ministerial Regulation No 72/2025, has expanded the government‑funded PPh 21 tax incentive (DTP) to include entertainment businesses such as nightclubs, karaoke venues, discotheques and massage parlors. The incentive applies to employees of these establishments who meet the stipulated eligibility criteria.

Eligibility requires a taxpayer identification number (NPWP) or national ID (NIK) linked to the tax authority’s system, and income limits – up to IDR 10 million per year for permanent staff, or up to IDR 500 thousand per day (or IDR 10 million per month) for non‑permanent staff. The businesses must be registered under the specific Business Field Classification Codes (KLU) listed in Annex A of PMK 72/2025.

The amendment allows a larger share of tourism‑related workers to benefit from reduced tax liability, and the government expects it to stimulate growth in the post‑pandemic entertainment sector.