Article 25 Income Tax Installment (PPh 25)

PPh Article 25 is an income tax installment paid monthly by the taxpayer as advance payment toward the year's total tax liability. Governed by Article 25 of Law No. 36/2008 on Income Tax (UU PPh) and Article 13 of Law No. 28/2007 on General Tax Provisions (UU KUP). The monthly installment amount is calculated by dividing the previous year's annual tax liability from the annual return by 12 months (Article 25 para. 2, UU PPh). If the prior year's annual return showed tax liability of Rp 120 million, the PPh 25 installment for the current year is Rp 10 million per month. Payment deadline is the 15th of the following month (Article 25 para. 5, UU PPh), and the monthly return must be filed by the 20th. PPh 25 installments paid during the year become tax credits on the annual return, reducing the year-end balance due (PPh 29) or increasing the year-end overpayment (PPh 28).

This article is for education, not tax advice.

Source: Article 25 UU PPh (Law No. 36/2008); Article 13 UU KUP (Law No. 28/2007)