Bupot A1: Full-Year, Partial-Year, or Pro‑Rated Options

JAKARTA – Income tax (PPh) 21 withholding agents must issue a Tax Withholding Certificate (Bupot) using Form BPA1 for each permanent employee for the final tax period, as required by Article 7 paragraph (1) letter e of PER‑11/PJ/2025 effective 2025. The BPA1 replaces the monthly withholding certificate (BPMP) when income is paid in December or when an employee leaves the company.

Form BPA1 includes a ‘Deduction Type’ field with three options: (i) Full‑Year for employees who earned income from January through December; (ii) Less‑Than‑A‑Year for employees who worked less than a calendar year without annualization; and (iii) Less‑Than‑A‑Year with Income Pro‑Rated for cases where income is annualized, such as employees who resign, pass away, or expatriates who become domestic taxpayers.

Choosing the correct deduction type ensures accurate PPh 21 calculation and compliance, reducing the risk of penalties for businesses. The e‑Bupot module streamlines data entry and electronic reporting.