Tax Year Finalization: Practical Guide to December PPh 21 in Core Tax

December holds a crucial position in the Article 21 Income Tax (PPh 21) cycle. Unlike January to November which uses the Average Effective Rate (TER) scheme, the December Tax Period (or Final Tax Period) requires employers to perform a final calculation (true up) using the Article 17 rate of the Income Tax Law. The transition to the Core Tax Administration System (CTAS) significantly changes the administrative procedures for this process.

Here is a step-by-step guide to navigating December reporting in the Core Tax application.

1. Concept Shift: From TER to Article 17

Before entering the application, understand the basic principles. In December, you no longer multiply gross salary by TER. You must:

1. Calculate Total Gross Income for the Year (January to December).
2. Deduct office costs (biaya jabatan), pension contributions, and mandatory religious donations/zakat paid through the employer.
3. Calculate Taxable Income (PKP) based on the PTKP status at the beginning of the year (or actual condition at the start of the year).
4. Calculate Annual Tax Payable using the progressive Article 17 rates.
5. Deduct the Total Tax Withheld from January to November (accumulated TER).
6. The difference is the tax to be withheld (if underpaid) or returned to the employee (if overpaid) in December.

2. Creating the Annual Withholding Slip (Form BPA1)

In Core Tax, the old Form 1721-A1 is now called Form BPA1. This form is mandatory for every permanent employee in the Final Tax Period.

• Creation Step: Enter the eBupot module in the Taxpayer Portal, select Create BPA1 (Buat Bupot BPA1).
• Pre-populated Feature (Get Data): The Core Tax system simplifies this by pulling accumulated income and tax data withheld from January to November (based on previously reported Monthly Withholding Slips/BPMP). You simply verify and add the December income.
• Key Data Input: Ensure deductible components like Zakat/Mandatory Religious Donations are filled in correctly as this can reduce the employee's tax payable.
• Final Result: At the bottom of the BPA1 form, the system will display the status: Underpayment (positive value) or Overpayment (value in brackets/negative).
  • If Overpayment (Lebih Bayar) occurs: The company is required to refund the excess to the employee by the end of the following month (January of the next year).

3. SPT Masa Reporting: Form L-IB and Master Return

Once all BPA1s for permanent employees are created, the next step is reporting the PPh 21/26 Monthly Tax Return (SPT Masa).

• Form L-IB (Specific to Final Period): Data from all BPA1s you created will automatically aggregate into Form L-IB (Final Tax Period Withholding List). You do not need to re-input manually. This form replaces the function of the annual employee list reporting.
• Master Return (Induk SPT): Enter the SPT Masa menu. The system will pull data from L-IB to the Master SPT.
  • If the total is Underpayment: You can create a billing code directly in the system and make the deposit.
  • If the total is Overpayment (due to tax refunds to employees): You are entitled to compensation.
• Flexible Compensation: One of the advantages of Core Tax is compensation flexibility. Overpayments in the December Period can be compensated to the next tax period (e.g., January of the following year) without having to be sequential. You simply select the destination tax period for compensation in the Master SPT.

4. Handling Employees Resigning in December

If an employee stops working exactly in December, the process is the same as for employees working the full year. You issue a BPA1 with the status "Full Year" (Setahun Penuh) or adjusted to their working period if they started mid-year.

Conclusion

The key to successful December reporting in Core Tax is the validity of the previous months' data (Jan-Nov). Since the system uses a pre-populated mechanism, errors in previous periods will carry over to the final calculation in BPA1. Ensure you reconcile data before generating BPA1 to avoid complicated corrections later.