PP 58 Tahun 2023 Tentang Tarif Pemotongan PPh Pasa 21 Atas Penghasilan Sehubungan Dengan Pekerjaan, Jasa, atau Kegiatan WP Orang Pribadi

Withholding of Income Tax (PPh) Article 21 and/or Article 26 regarding work, services, and activities must be performed by:

• Employers: Individuals and Entities (HQ/branch/rep office) paying salaries, wages, honoraria, allowances, and other payments (including benefits in kind/fringe benefits).
• Government Agencies: Including non-ministerial government institutions, secretariats of state institutions, and RI representatives abroad.
• Pension Funds & Social Security Bodies: And other bodies paying pension, old-age allowances/security.
• Individuals and Entities: Paying honoraria or fees for services provided by individuals, including experts (freelancers).
• Activity Organizers: Entities, government agencies, organizations, or individuals paying prizes/awards related to an activity,.
• Withheld Parties Question: Who are the parties subject to Income Tax Article 21/26 withholding? Answer: Income recipients who are Individual Taxpayers, including:
• Permanent Employees.
• Pensioners.
• Commissioners/Supervisory Board Members (receiving irregular compensation).
• Non-Permanent Employees.
• Non-Employees: Including experts (lawyers, accountants, doctors, etc.), artists/influencers, athletes, teachers/trainers, authors, advertising agents, project supervisors, order takers, merchandise peddlers, insurance agents, and MLM distributors.
• Activity Participants: Participants in competitions, meetings/conferences, committees, or education/training/internships.
• Pension program participants who are still Employees.
• Former Employees,.

• Must register with the Tax Office.
• Must calculate, withhold, pay, and report the payable tax every calendar month.
• Must create and keep calculation records/worksheets for each income recipient.
• Must report even if the tax withheld is nil or subject to a 0% rate.
• Must create and provide Withholding Slips to the income recipient (including for 0% rate).
• Must refund excess withholding to Permanent Employees/Pensioners no later than the end of the month following the Last Tax Period.
• Has the right to offset excess tax payments in the following month

If there is excess withholding from previous periods in the last tax period, the Withholder must refund the excess PPh Article 21 (excluding Government Borne Tax) to the relevant Permanent Employee and Pensioner along with the withholding slip, no later than the end of the month following the Last Tax Period,.

No. PPh Article 21 withholding on income received by non-employees uses the formula: (50% x Gross Income) x Article 17 Rate

PPh Article 21 borne by the employer is a benefit (kenikmatan) subject to tax. Therefore, the amount of tax borne by the company under the gross up method is added to the regular income received by the permanent employee in that month to obtain the gross amount as the Tax Base (DPP)