- Finally The government formally announces that it will cover Income Tax (PPh) article 21 or employee salary tax within six months.
The step is part of a policy stimulus package by the government to reduce the impact of the corona virus on an economic slowdown.
Minister Sri Mulyani Indarawati also explained that the government would bear 100 percent of Article 21 income tax workers with income of up to Rp 200 million per year. This means that workers with an income of up to Rp 16 million per month will be exempt from their employee salary tax. “We will provide a tax 21 tax relaxation scheme by giving that they can pay, or if the company that pays us in this case the government will bear 100 percent of the income tax of workers who have income of up to Rp 200 million per year,” explained Sri Mulyani in Jakarta, Friday (3/13/2020). The minister of economic also explained that the relaxation of Article 21 of the Income Tax would apply to all manufacturing industries, both for companies included in the Export Import Destination (KITE) and non-KITE Importability category. “Manufacturing industries where employees are most likely to be affected will receive a PPh article 21 relaxation scheme that will be borne by the government, for employees with revenues of up to Rp 200 million per year,” he explained.
Sri Mulyani also explained, the relaxation of Article 21 PPh will begin to take effect from April 2020.
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