PPH ARTICLE 21
The calculation of Income Tax Article 21 2016 must be adjusted to the 2016 Non-Taxable Income (PTKP) rate determined by the Minister of Finance and DGT, namely the Director General of Taxation Regulation No. PER-16 / PJ / 2016, Minister of Finance Regulation No. 101 / PMK.010 / 2016 and No. 102 / PMK.010 / 2016 concerning Adjustment of Non-Taxable Income that is effective from the 2016 tax year. The following is how to calculate PPh 21 using 2016 PTKP (latest PTKP), either manually or automatically by using Article 21 Income Tax applications.
Calculation of PPh 21 2016 with the Latest 2016 PTKP
The calculation of PPh 21 2016 is always adjusted to the latest PTKP (Non-Taxable Income) rates set by the DGT. The 2016 PTKP (the latest PTKP) listed in the Director General of Taxes Regulation Number PER-32 / PJ / 2015 is as follows:
IDR 54,000,000 per year, equivalent to IDR 4,500,000 per month for individual taxpayers.
IDR 4,500,000 per year or equivalent to IDR 375,000 per additional month for taxpayers who marry (without dependents).
Rp. 4,500,000 per year, equivalent to Rp. 375,000 per additional month for each family member of blood and family of finals in a straight line or adopted child, which is fully borne, at most 3 (for each) family.
The adjustment of the 2016 PTKP tariff (the latest PTKP), makes the way to calculate PPh 21 also changes.
Calculation of PPh 21 2016: Permanent Employees
Here are examples of calculating PPh 21 2016 for employees or permanent employees with 2016 PTKP (Newest PTKP), both manually and automatically using the OnlinePajak application.
Example of Calculating PPh 21 2016 Manually
The following is an example of how to calculate Article 21 Income Tax manually:
Sita Rianti is an employee at PT. Onix Komunika is married and has three children. Sita’s husband is a civil servant at the Ministry of Communication & Information. Sita receives a salary of Rp. 6,000,000 per month.
PT. Onix Komunika follows the pension program and BPJS Kesehatan. The company pays pension contributions from the BPJS by 1% of the salary calculation, which is Rp. 30,000 per month. In addition, the company pays the employee’s Old Age Insurance (JHT) monthly contribution of 3.70% of salary, while Sita pays monthly retirement insurance contributions of 2.00% of salary. The work accident insurance premium (JKK) and death insurance (JK) are paid by the employer with an amount of 1.00% and 0.30% of salary respectively.
In July 2016 in addition to receiving salary payments, Sita also received overtime (IDR 2,000,000).
The results are as follows:
Basic Salary 6,000,000.00
(i) Other Allowances (if any) 2,000,000.00
(ii) JKK 0.24% 14,400.00
JK 0.3% 18,000.00
Gross (gross) income of 8,032,400.00
1. (iii) Position Fee: 5% x 8,032,400.00 = 401,620.00 401,620.00
2. JHT (Old Age Insurance) contribution, 2% of 120,000.00 basic salary
3. (iv) JP (Pension Insurance), 1% of basic salary, if there is 60,000.00
Net income (net) a month 7,450,780.00
(v) Net income a year 12 x 7,450,780.00 89,409,360.00
(vi) 54,000,000.00 Non-Taxable Income (PTKP)
Taxable Income Year 35,409,360.00
(vii) Rounding down 35,409,000.00
Payable Income Tax (see Income Tax Article 21)
5% x 50,000,000.00 1,770,450.00
Article 21 of July PPh = 1,770,450.00: 12 147,538.00
* Valid for WP with NPWP, without NPWP, it needs to be multiplied by 120%: Rp. 147,538.00 x 120% = Rp. 177,046.00
It is assumed that the base salary is Rp. 6,000,000.
(i) Other benefits such as transportation allowances, overtime pay, accommodation, communication and other non-permanent benefits. Generally these benefits can be provided by the company or not, depending on the company policy itself.
(ii) Work Accident Insurance Fees (JKK) ranged from 0.24% – 1.74% according to the type of business as regulated in Government Regulation Number 76 of 2007. At OnlinePajak, the JPP contribution rates applied were JKK tariffs most commonly used by companies that is 0.24%.
(iii) Job Fee of 5% of Gross Income, a maximum of Rp. 500,000 a month, or Rp. 6,000,000 a year
(iv) The guarantee or Pension Fee is determined by the financial institution whose establishment is approved in the Regulation of the Minister of Finance and appointed by the company. The percentage percentage applied here is 1%.
(v) Net Income: If an employee is an old employee (more than one year) or a new employee who starts work in January of that year, then the net income is multiplied by 12 to get a net income value a year, but if the employee is a new employee who starts working in May for example, the net income a year multiplied by 8 (obtained from the calculation of the month of the year: May-December = 8 months). In this example it is assumed that employees are new employees who start work in January.
(vi) Non-Taxable Income (PTKP) serves to reduce gross income, so that the value of Taxable Income will be calculated as the object of income tax owned by the taxpayer.
In this example WP is married and has three dependents, but because the husband of WP receives or earns income, the amount of WP Sita’s PTKP is PTKP for himself (TK / 0).
(vii) Taxable Income must be rounded down to a total of thousands, or 3 digits behind (hundreds of rupiahs) is 0. Example: 56,901,200.00 to 56,901,000.