PTKP (Non-Taxable Income Threshold)
PTKP (Penghasilan Tidak Kena Pajak / Non-Taxable Income Threshold) is the annual income level below which individual resident taxpayers owe no income tax. Governed by Article 7 of Law No. 36/2008 on Income Tax (UU PPh) and Ministry of Finance Regulation No. 101/PMK.010/2016. Current PTKP amounts (effective January 1, 2016 and continuing): Self: Rp 54,000,000 per year (Rp 4,500,000 per month), Additional for married status: Rp 4,500,000, Additional per dependent (child or spouse): Rp 4,500,000 each (maximum 3 dependents). PTKP status is denoted by codes: TK (Single), K (Married), K/I (Married with earning spouse), I (Spouse earning). Income below PTKP incurs zero income tax liability, but taxpayers holding an NPWP must still file an annual return even when tax liability is zero.
This article is for education, not tax advice.
Example
Anto, single with status TK/0, earns Rp 4 million/month = Rp 48 million/year. The PTKP for TK/0 status is Rp 54 million/year. Since Anto's income of Rp 48 million is below his PTKP threshold, his income tax liability = Rp 0. However, because Anto has an active NPWP, he must still file the annual return (Form 1770 SS) by March 31, reporting his income and zero tax liability.
Source: Article 7 UU PPh (Law No. 36/2008); PMK No. 101/PMK.010/2016
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