Home » News » With Jokowi’s blessing, Sri Mulyani is Ready to Lower Final Income Tax Article 21

With Jokowi’s blessing, Sri Mulyani is Ready to Lower Final Income Tax Article 21

Jakarta, CNBC Indonesia – Minister of Finance Sri Mulyani Indrawati plans to revise the final income tax withholding rate (PPh) Article 21 on non-routine income which is borne by the APBN or APBD.

This proposal has been approved by President Joko Widodo (Jokowi) by issuing Presidential Decree (Keppres) 4/2021 on the 2021 Government Regulation Formulation Program, as quoted by CNBC Indonesia in the attachment to the Presidential Decree, Wednesday (17/3/2021).

In the attachment to the Presidential Decree, there is a Draft Government Regulation (RPP) concerning Amendments to PP 80/2010 concerning Withholding Rates and Article 21 Income Tax Imposition.


Through the RPP, the government will amend the final income tax article 21 on non-routine income such as honoraria or other benefits.

“Changes in the final PPh Article 21 rate on income other than regular and regular income every month in the form of honorarium or other compensation under whatever name is borne by the APBN or APBD,” reads the attachment to the Presidential Decree.

The income that is borne by the APBN or APBD means income received by state officials, civil servants, members of the TNI / Polri and retirees, which incidentally is a burden to the APBN and APBD.

Currently, the final PPh article 21 rates on income in the form of honoraria and other benefits that are borne by the APBN or APBD are regulated in PP 80/2010. In this regulation, the payment of honoraria and other benefits is deducted by 0%, 5% and 15% depending on the category of honorarium recipient.

For the final income tax article 21, the zero percent rate imposed on honoraria is received by civil servants of class I, II, members of the TNI / Polri with the rank of enlisted and non-commissioned officers, as well as retirees.

If the recipient of the honorarium or other compensation is a class III civil servant, a member of the TNI / Polri with the rank of first officer and retirees, then the gross amount of the honorarium will be deducted by 5%.

The 15% discount rate will be imposed on honoraria for state officials, civil servants of class IV, members of the TNI / Polri with middle and high rank officers, and their retirees.

[Gambas:Video CNBC]

(Cha Cha dance)


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