Salary 2023

KONTAN.CO.ID – JAKARTA. Starting on Sunday 1 January 2023, the new rate of income tax (PPh) applies to individuals or employees. The following is the latest PPh tax rate that applies in 2023. Check also groups that are exempt from PPh tax.

The government has issued new regulations regarding new rates of income tax (PPh) for individuals or employees. These adjustments are in the context of reducing the budget deficit and increasing the tax ratio, so that the government takes fiscal policy steps.

One of the policies taken by the government is to reform in the field of taxation.

This has been stated in Government Regulation Number 55 of 2022 concerning Adjustments to Regulations in the Income Tax Sector which was signed by President Joko Widodo on December 20, 2022.

In the PP, every additional economic capability received or obtained by a taxpayer in the form of income is a tax object. This means that any income received by employees both from within and outside the country will be taxed.

However, for foreign nationals who have certain expertise in accordance with statutory provisions, they are exempted from the imposition of income tax. As is well known, income tax in Indonesia has undergone changes since the HPP Law was enacted on January 1, 2022.

In detail, the tax rates applied to taxable income are divided into five layers. First , income up to IDR 60 million is subject to a PPh tax rate of 5%.

Thus, an employee with a salary of IDR 5 million per month must pay a PPh tax of 5% or IDR 250,000.

Second , income of more than IDR 60 million to IDR 250 million is subject to a 15% PPh tax rate. Third , income of more than IDR 250 million to IDR 500 million is subject to a 25% PPh tax rate.

Fourth, income above IDR 500 million to IDR 5 billion is subject to a 30% PPh tax rate. Fifth , income above IDR 5 billion is priced at a PPh tax rate of 35%.

PPh Tax Free Group

Government Regulation Number 55 of 2022 also contains more detailed provisions regarding limits on gross turnover or tax-free turnover. Based on Article 60 of the PP, individual MSMEs with a turnover of up to IDR 500 million in a year are not subject to PPh.

This means that private MSMEs only need to pay taxes if their annual turnover is above IDR 500 million.

“The share of gross turnover from businesses not subject to PPh is the total gross turnover of businesses calculated cumulatively since the first tax period in a tax year or part of a tax year,” reads Article 60 paragraph (3) in the PP, quoted Friday (30/ 12).

Executive Director of Pratama-Kreston Rax Research Institute (TRI) Prianto Budi Saptono said that PP Number 55 of 2022 is an implementing regulation of the HPP Law. So in principle, there is nothing new, except for more detailed arrangements because the PP is under the Income Tax Law.

“There are no new PTKP arrangements yet in PP 55/2022, so PTKP still refers to the PPh Law (revision of the HPP Law). Adjustments to the amount of PTKP refer to the Minister of Finance Regulation after the government consulted with the DPR,” said Prianto to Kontan.co.id, Friday (30/12).

That is the amount of the PPh tax rate that applies in 2023 as well as groups that are free from tax. So, how much is your PPh tax deduction?

Source: https://nasional.kontan.co.id/news/resmi-berlaku-ini-tarif-pajak-penghasilan-terbaru-2023-gaji-rp-5-juta-bayar-pajak