SW Indonesia Tax Update PMK 10 tahun 2025 – ENG

REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 10 OF 2025 (PMK 10/2025) CONCERNING INCOME TAX ARTICLE 21 ON CERTAIN INCOME BORNE BY THE GOVERNMENT AS PART OF THE ECONOMIC STIMULUS FISCAL YEAR 2025

The purpose of this regulation is to maintain the purchasing power of the public and to fulfill the economic and social stabilization function. As part of the government’s efforts to maintain the welfare level of society, an economic stimulus package has been established, including fiscal facilities in the form of government-borne taxes.

Income received or earned by employees in relation to their employment is subject to withholding of Income Tax Article 21 by the employer in accordance with the provisions of Article 21 of the Income Tax Law.

Income Tax Article 21 on the total gross income in 2025 received or earned by certain employees from employers meeting specific criteria will be granted an Income Tax Article 21 incentive borne by the government for the tax period from January 2025 to December 2025.

Certain permanent employees will be eligible for the Income Tax Article 21 incentive borne by the government, if they receive income from an employer that meets the following criteria:

1. Conducts business activities in the following industries:
2. Footwear;
3. Textiles and apparel;
4. Furniture; or
5. Leather and leather products; and
6. Has a main business classification code listed in the tax administration database of the Directorate General of Taxes which is an integral part of this Ministerial Regulation.

Furthermore, certain permanent employees will be eligible for the Income Tax Article 21 incentive borne by the government if they meet the following requirements:

1. The employee has a Taxpayer Identification Number (NPWP) and/or a National Identity Number (NIK) recorded by the Directorate General of Population and Civil Registration and integrated into the Directorate General of Taxes’ administrative system;
2. The employee receives or earns a fixed and regular gross income not exceeding IDR 10,000,000.00 (ten million rupiah) in:
   1. The January 2025 tax period, for employees who started working before January 2025; or
   1. The first tax period of employment, for employees who start working in 2025.
3. The employee does not receive any other government-borne Income Tax Article 21 incentives under tax regulations.

This Ministerial Regulation shall come into effect on the date of promulgation, February 4^th, 2025.

For Tax Service Assistance, please contact:

            Rani Widianti

            T. (+6221) 2222-0200

            E. [email protected]

            Alvina Oktavia

            T. (+6221) 2222-0200

            E. [email protected]