How to Calculate Tax Article 21 with Tax Regulation Harmonization Law
The Law on Harmonization of Tax Regulations (HPP Law) has been ratified by the DPR and the Government in the DPR Plenary Meeting on October 7, 2021. One of the changes is Article 17 of the Income Tax Law. In the amendment article, the progressive rate which was previously the highest at 30% was changed to 35% and there is also a change in the tax rate layer where previously there were only four layers but now it is five layers.
With the changes in rate and layers, the calculation of Article 21 Income Tax also changes. Therefore, does the change in the article make a reduction or increment for the Article 21 income tax payable? Below will be shown an example of the Income Tax Article 21 calculation before the HPP Law and after the HPP Law.

The following is a comparison for Article 17 rates in Income Tax Law (PPh Law) and HPP Law:
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In the HPP Law the amount of Non-Taxable Income (PTKP) per year still the same as previous regulation:
1. Individual Taxpayer: IDR 54,000,000
2. Additional for Marriage Taxpayer: IDR 4,500,000
3. Additional for a wife whose income is combined: IDR 54,000,000
4. Additional for each dependent: IDR 4,500,000 maximum 3 people
Examples of Calculations:
January 2022 | HPP Law
| PPh Law | January 2022 |
Base Salary | 12.000.000 | 12.000.000 | Base Salary |
Overtime Allowance | 1.200.000 | 1.200.000 | Overtime Allowance |
Communication Allowance | 200.000 | 200.000 | Communication Allowance |
Transportation Allowance | 600.000 | 600.000 | Transportation Allowance |
Income from the Employer | 14.000.000 | 14.000.000 | Income from the Employer |
Employer's paid guarantee: | Employer's paid guarantee: | ||
Health (4%) | 560.000 | 560.000 | Health (4%) |
JKK (0.24%) | 33.600 | 33.600 | JKK (0.24%) |
JKM (0.3%) | 42.000 | 42.000 | JKM (0.3%) |
JHT (3.7%) | 518.000 | 518.000 | JHT (3.7%) |
Retirement (2%) | 280.000 | 280.000 | Retirement (2%) |
Gross Income | 15.433.600 | 15.433.600 | Gross Income |
Reduction: | Reduction: | ||
Job Fee (5%) max 500,000 | 500.000 | 500.000 | Job Fee (5%) max 500,000 |
Health Insurance (1%) | 140.000 | 140.000 | Health Insurance (1%) |
JHT (2%) | 280.000 | 280.000 | JHT (2%) |
Pension Guarantee (1%) | 140.000 | 140.000 | Pension Guarantee (1%) |
Net Income/Month | 14.373.600 | 14.373.600 | Net Income/Month |
Net Income/Year | Net Income/Year | ||
14,373,600 x 12 months | 172.483.200 | 172.483.200 | 14,373,600 x 12 months |
PTKP (K/2) | 67.500.000 | 67.500.000 | PTKP (K/2) |
Taxable Income | 104.983.200 | 104.983.200 | Taxable Income |
Tax payable: | Tax payable: |
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