New Regulation Context and Background
📌 The new provisions for Withholding Tax Article 21 (PPh Pasal 21) are governed by PP Number 58 of 2023, its derivative PMK Number 168 of 2023, and the implementing regulation PER Number 2 of 2024.
📉 The primary motivation for this update is the simplification and reduction of complexity in PPh 21 calculation schemes, which were previously numerous and highly technical under the old PER Number 16 of 2016.

Implementation of Average Effective Tax Rate (TER)
⚙️ The core change is the introduction of the Average Effective Tax Rate (TER) table, which will be used for calculating PPh 21 deductions from January to November.
⚖️ The final month's calculation (usually December) will revert to the standard calculation method using Article 17 progressive tax rates to ensure the annual tax burden remains the same.
🚫 Crucially, the TER mechanism is a technical calculation shift only; it will not impose a new tax burden or increase the total annual PPh 21 liability for employees.

TER Classification and Application
📊 Monthly TER is divided into three categories (A, B, and C) based on the employee's Non-Taxable Income (PTKP) status (e.g., TK/0, K/1, etc.).
📅 Daily TER is simpler, divided into two rates: 0% for gross daily income up to IDR 450,000, and 0.5% for daily income between IDR 450,000 and IDR 7,500,000.
🧐 Employees must ensure their PTKP status registered with their employer is accurate, as this determines their assignment to TER Category A, B, or C.

Reporting and Effective Date
✅ The new TER provisions are effective starting January 1, 2024, meaning PPh 21 calculations for January onwards must follow this new structure.
💻 Tax reporting for PPh 21 will now utilize a new feature called "e-KTP 21" available within the DJP Online system for filing SPT Masa PPh 21.

Key Points & Insights
➡️ The primary goal of the TER is simplification of monthly PPh 21 withholdings, not revenue augmentation.
➡️ Total annual PPh 21 liability will remain the same as under previous regulations; differences only occur in the monthly withholding distribution between January and November.
➡️ Employees' PTKP status directly dictates which TER category (A, B, or C) applies to their monthly tax deduction.
➡️ Taxpayers must activate and use the "e-KTP 21" feature on DJP Online for filing PPh 21 tax forms starting from the January 2024 period.

📸 Video summarized with SummaryTube.com on Nov 19, 2025, 11:34 UTC