Employee Criteria for PPh 21 DTP Tax Incentive October‑December

JAKARTA – The government has defined criteria for permanent staff to receive the PPh 21 DTP tax incentive (income tax article 21 benefit borne by the state). Eligibility requires regular gross income not exceeding IDR 10 million per month. The rule applies across all sectors, including tourism.

The IDR 10 million threshold is measured using earnings from the January 2025 tax period for employees hired before January 2025, or using earnings from the first month of employment for those hired in 2025. Only steady monthly income is counted; irregular items such as bonuses, holiday allowances, or occasional overtime are excluded. For the tourism sector, the incentive starts in October 2025.

The incentive period is limited to October‑December 2025. Employers must report the utilization of the incentive through the monthly PPh 21/26 return; failure to file for any month within the period can result in the loss of the entire 2025 incentive. This creates a compliance requirement for both companies and employees.