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PPh 21 is income tax on salary, wages, honoraria, allowances, and other payments received by individuals in connection with employment, services, or activities. Employers withhold and remit it. Legal basis: Income Tax Law Article 21, with the latest technical rules in PMK 168/2023 using the TER scheme. See the full PPh 21 Guide 2026.
The general VAT rate is 12% for certain luxury goods, and an effective 11% for other taxable goods/services through the alternative tax base mechanism (HPP Law and PMK 131/2024). This rate applies from 1 January 2025. See scope and invoicing in the VAT 12% Guide 2026.
The deadline for the Individual Annual Tax Return is 31 March of the following year. For corporate taxpayers it is 30 April. Legal basis: KUP Law Article 3 paragraph (3).
MSME taxpayers with annual gross turnover up to IDR 4.8 billion may opt for the 0.5% Final PPh rate under PP 55/2022. For individual MSMEs, gross turnover up to IDR 500 million per year is exempt from Final PPh (HPP Law).
NPWP registration can be done online via ereg.pajak.go.id or in person at the nearest KPP. Since 2024, the NIK functions as the NPWP for resident individual taxpayers (PMK 112/2022). Step-by-step in the Individual NPWP Guide.
Employees have PPh 21 withheld by their employer through monthly TER and annual reconciliation (PMK 168/2023). Freelancers and independent workers usually self-assess via the Annual Tax Return, with the option of 0.5% Final PPh if they meet MSME criteria (PP 55/2022).