Sri Mulyani simulates a salary of IDR 5 million subject to a 5% tax deduction.

KOMPAS. com – The government has imposed new rules income tax (PPh) Article 21 by increasing the limit of taxable income (PKP) to Rp 5 million. per month or Rp 60 million. per year, from the previous Rp 4.5 million. per month or Rp 54 million. per year.

This change is contained in the law number 7 of 2021 on the harmonization of tax regulations (HPP). This rule is then clarified in government regulation number 55 of 2022 relating to the adaptation of regulations in the income tax sector.

Tax rate rules PP Article 21 The bottom 5 percent of the same layer is actually still the same as in the previous regulation. The difference is only in the PKP limit.

“The change in the PPh rate level is to protect people on lower middle incomes. Many people in the lower middle class actually have a lower tax burden,” said the finance minister Sri Mulyani Indrawati quoted by Television compassSunday (1/1/2023).

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income tax The government withholds itself through the employing company from the employee’s salary. The calculation is the salary minus the non-taxable income (PTKP) and then multiplied by the progressive rate of the tax PPh Article 21.

Sri Mulyani gave an example, for employees with a salary of Rp 5 million. per month or Rp 60 million. per year, the income tax that must be paid to the state treasury is Rp 300,000. per year, i.e. Rp 30,000. In a month.

“That’s an income of Rp. 60 million a year minus Rp. 54 million, which is Rp. 6 million and multiplied by 5%. This is just Rp. 300,000 a year to pay taxes,” explained Sri Mulyani.

That is, the assumption of the calculation of tax deductions for employees who do not have dependents. For taxpayers who have dependents such as children, there are other deductions besides the PTKP.

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“If you are married, there is a government allowance for your wife and if you have children, there is an extra one,” Sri Mulyani said.

This new rule is also good news for workers with a salary of Rp. 4.5 million a month, whose salary was previously cut by 5 percent, are now exempt from PPh or become PTKP.

“The HPP law makes it easier for you not to pay Rp 54 million. But now the HPP law increases it from Rp 50 million. to Rp 60 million. So that you pay only 5 percent of the first Rp 60 million. Sri Mulyani explained.

Similarly, the PPh rate of 15% originally levied for tax payers with income above IDR 50 million to IDR 250 million, has now been changed to income above IDR 60 million to IDR 250 million.

The provisions of the progressive rates PPh Art. 21 are as follows:

• Taxable income up to IDR 60 million is subject to PPh rate of 5%.
• Taxable income over IDR 60 million to IDR 250 million is subject to 15% tax
• Income above IDR 250 million up to IDR 500 million with 25% PPh rate
• Taxable income above IDR 500 million up to IDR 5 billion by 30%.
• Income above IDR 5 billion is subject to PPh of 35%.

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