Article 29 Income Tax (Balance Due)

PPh Article 29 is the remaining tax balance payable at year-end after deducting all tax credits paid or withheld throughout the year. Governed by Article 29 of Law No. 36/2008 on Income Tax (UU PPh). PPh 29 is calculated as: Annual Tax Liability (from annual return) MINUS Total Tax Credits (PPh 21, 25, 22, 23, 24, etc.). If the result is positive, it is PPh 29 (balance due), which must be paid. If the result is negative, it is PPh 28 (overpayment), which may be refunded or carried forward. PPh 29 must be settled before filing the annual return: by March 31 for individual taxpayers and April 30 for corporate taxpayers (Article 3 para. 3, UU KUP). Late payment incurs interest penalty of 2% per month (Article 9 para. 2b, UU KUP).

This article is for education, not tax advice.

Example

Rina has annual income of Rp 100 million. Her tax liability = Rp 8 million. Her tax credits are: PPh 21 (Form 1721-A1) Rp 5 million + PPh 25 installments Rp 2 million = Total credits Rp 7 million. PPh 29 = Rp 8 million - Rp 7 million = Rp 1 million (balance due). Rina must pay Rp 1 million by March 31 before filing her return. If one month late, interest penalty = Rp 1 million × 2% = Rp 20,000.

Source: Article 29 UU PPh (Law No. 36/2008); Article 9 para. 2b UU KUP (Law No. 28/2007)