Sri Mulyani announces that tax incentives for employees will be revoked next year



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Finance Minister Sri Mulyani Indrawati at the Coordinating Ministry of Economic Affairs, Jakarta, Monday (2/24/2019). (Source: KOMPAS.COM/MUTIA FAUZIA)

JAKARTA, KOMPAS.TV – Finance Minister Sri Mulyani announced that the Article 21 Income Tax (PPh) incentive, which is the basis for employee tax, will be revoked next year.

“We still offer tax incentives. But PPh Article 21, PPh Article 25, PPh 22 The import will no longer take place during the next year,” Finance Minister Sri Mulyani said in a working meeting with Commission XI of the Parliament of Indonesia, on Wednesday (2/9/2020) quoted from Kontan.co.id.

Also read: NPWP and NIK will be combined, then integrated with all resident account data

Finance Minister Sri Mulyani ensured that the tax incentives in the 2021 National Economic Recovery (PEN) program were only the acceleration of value added tax (VAT) refunds or refunds.

In addition, there is a government tax incentive (DTP). However, Sri Mulyani has not said what kind of tax the DTP mechanism will use.

What is clear is that the total budget for corporate tax incentives in the PEN 2020 program is capped at IDR 20.4 trillion.

The ceiling is lower than the location for this year’s incentive budget of Rs 120.61 trillion. Or only about 16.9% of the total ceiling this year.

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