Definition of Permanent Employee (Pegawai Tetap) for Tax Purposes
📌 For tax purposes, a permanent employee is defined by their characteristics, not just their employment contract type (like PKWTT or PKWT in labor law).
👨‍💼 Key characteristics reviewed are: receiving regular income, working full-time, and being based on a contract (written or unwritten) for a specific role.
🔄 Outsourced employees can be categorized as permanent employees for tax purposes if they meet these three criteria.

Changes in PPh Article 21 Calculation (PMK 168/2023)
⚙️ The new regulation introduces a significant change using the Effective Average Tax Rate (Tarif Efektif Rata-rata or TER) scheme for calculations in months *other than* the final tax month.
📉 For the final tax month, the calculation remains based on Article 17 rates, but now allows for an additional deduction: obligatory religious tithes (Zakat/Sumbangan Keagamaan) paid through the employer.
📊 The total annual PPh Article 21 liability remains the same as the previous regulations because the underlying Article 17 rate structure is unchanged; the difference lies in the distribution of tax payments across monthly periods.

Non-Taxable Income Threshold (PTKP) Determination and Application
🔑 The PTKP (Penghasilan Tidak Kena Pajak) sets the minimum income threshold before personal income tax is levied, primarily intended to ease the burden on lower to middle-income individuals.
📅 The PTKP status is fixed based on the taxpayer's condition as of January 1st of the calendar year; changes occurring mid-year (like marriage or birth of a child) only affect the PTKP calculation starting the *following* calendar year (e.g., changes in 2023 affect 2024).
🛠️ Employees must inform their employer of any PTKP updates (marriage, new dependents) so the employer can adjust the withholding tax accordingly for subsequent periods.

PTKP Amounts and Dependent Rules
💰 The basic PTKP for an individual taxpayer is IDR 54,000,000.
💑 An additional IDR 4,500,000 is added for a spouse (if not working separately), and an additional IDR 4,500,000 is added for each dependent, up to a maximum of three dependents.
👨‍👩‍👧‍👦 Dependents eligible to add to the PTKP must be lineal blood relatives or affinal relatives in the direct line (parents, children, in-laws, stepchildren), plus adopted children, who have no income and whose entire living costs are fully covered by the taxpayer.

Key Points & Insights
➡️ Outsourcing status is secondary to functional characteristics (regular income, full-time work) when determining permanent employee tax status.
➡️ Taxpayers must update their PTKP status annually based on their status at the beginning of the year, even if major life changes occurred mid-year.
➡️ The new TER scheme simplifies monthly calculations for non-final months but ensures the final annual tax burden remains consistent with prior rules.
➡️ Deductibility of religious contributions (Zakat/Sumbangan) in the final month requires payment directly through the employer.

📸 Video summarized with SummaryTube.com on Nov 19, 2025, 12:03 UTC