PPh 21 Payroll & Monthly Reporting

Indonesian employers are legally designated as withholding tax agents and are strictly obligated to calculate, withhold, and report income tax on all salaries, wages, allowances, and bonuses paid to domestic employees (PPh 21) and foreign non-resident personnel (PPh 26).

Under recent taxation reforms (Government Regulation No. 58/2023 and PMK 168/2023), monthly withholding must be calculated using the Effective Average Tax Rate (TER - Tarif Efektif Rata-Rata) system, with annual reconciliation performed in December. Filings must be submitted through the unified electronic withholding tax portal (e-Bupot 21/26) by the 20th of the following month.

Today Consultant manages the complete payroll withholding cycle: applying precise TER percentage matrices, generating official withholding tax receipts (Bukti Potong), issuing state payment billing codes, and submitting monthly compliance returns on behalf of your company.