The government introduced an “Average Effective Rate” or “Tarif Efektif Rata-rata (TER)” for Article 21 employee income tax through Government Regulation No. 58 Year 2023 on 27 December 2023 (“GR-58“) and Minister of Finance Regulation No. 168 Year 2023 dated 29 December 2023 (“PMK-168“) which took effect on 1 January 2024. The purpose of GR-58 and PMK-168 are to simplify the Art. 21 Withholding Tax calculation by applying a monthly TER from January to November. 

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