How to Calculate PPh 21 for Activity Participants Under PMK

JAKARTA – PPh 21 (income tax on employment earnings) for activity participants is computed by multiplying the rate in Article 17(1) letter a of the Income Tax Law (personal tax rate) with the gross amount received in a tax period, as stipulated in PMK 168/2023 effective from 2023.

When the participant is also a permanent employee, earnings from the activity are combined with regular salary before applying the tax rate. PMK 168/2023 defines a participant as an individual receiving compensation other than regular wages, covering competitors, meeting attendees, seminar speakers, committee members, and trainees.

Taxpayers and event organizers must use this formula to withhold the correct PPh 21 and avoid administrative penalties. Companies should withhold tax on allowances, honoraria, prizes, and similar payments based on the undivided gross basis.