Issuing PPh 21 Withholding Certificates for Employees Changing

Irma, a tax‑administration staff member at a mining company, asked about the issuance of PPh 21 withholding certificates for a permanent employee who left in June 2025 and was rehired in October 2025. The employee had already received a BPA1 covering January‑June 2025. She wanted to know how to prepare the monthly BPMP and the BPA1 for both periods.

Under PMK No 168/2023 and PER‑11/PJ/2025, a mid‑year job change creates two separate tax‑withholding periods. For the January‑June period, the employer must issue a BPA1 no later than one month after the tax period ends, while BPMP is issued only up to May because June is covered by the final BPA1. For the October‑December period, the employer issues BPMP for October and November and a BPA1 in December that covers October‑December, all processed through the Coretax system.

When the employee provides the January‑June BPA1 to the new employer, Coretax automatically consolidates the prior net income and tax withheld, resulting in an accurate annual tax return and avoiding under‑payment risk from the progressive tax rates. If the certificates are not merged, each BPA1 stands alone and the employee must reconcile them in the personal tax return, which may lead to double taxation. Following these procedures ensures both companies and employees comply with PPh 21 regulations.