Tax Borne by Government (DTP)
Tax Borne by Government, abbreviated DTP from the Indonesian "Ditanggung Pemerintah", is a tax facility under which the tax that would normally be owed is paid by the government through the tax subsidy line of the state budget rather than by the relevant taxpayer. The scheme applies to several taxes, notably Income Tax (PPh) and Value Added Tax (PPN), and is generally limited to a defined period and specific sectors. The government uses DTP as a short-term fiscal stimulus to support household purchasing power, accelerate recovery in specific industries, or back strategic sectors. Taxpayers continue to report transactions as usual, but the tax amount is recorded as borne by the government. The legal basis for each DTP facility is set by a separate Minister of Finance Regulation that defines the criteria, validity period, and reporting procedures.
This article is for education, not tax advice.
Example
PMK 105/2025 establishes PPh Article 21 DTP for employees in labor-intensive industries and tourism earning up to IDR 10 million throughout 2026. PMK 24/2026 establishes PPN DTP on domestic economy airline tickets for 60 days starting 25 April 2026. In both schemes, the benefiting taxpayer does not bear the tax in cash.
Source: PMK 105/2025; PMK 24/2026
Related terms