Tax Update - NEW Rates of Income Tax Art. 21 - January 2024
On 27 December 2023, the Indonesian Government has issued a Regulation No. 58 year 2023 regarding the Rates of Income Tax Art. 21 on the Income related to the Employment, Service or Activities of Individual Taxpayer. This Regulation is applicable starting 1 January 2024.
The purpose of this Regulation is to simplify the Monthly Income Tax Art. 21 calculations by applying 1 (one) effective tax rate (TER) on the Gross Income of the Individual Taxpayer.
For the annual tax calculation, the Individual Income Tax should be recalculated by applying the Art. 17 of Income Tax Law.
Furthermore, the Ministry of Finance has also issued a Regulation No. 168 Year 2023 for the implementation of Government Regulation No. 8 Year 2023.
