Supporting a Nephew Does Not Increase PTKP for Taxpayers

JAKARTA – Taxpayers who fully cover a nephew’s living costs cannot increase their Non‑Taxable Income (PTKP). The restriction is stipulated in Article 7(1) of the Income Tax Law. The provision has been in force since the latest amendment.

PTKP is granted only to relatives in the direct line of descent—parents, biological children, in‑laws and legally adopted children—who are fully dependent, meaning they have no own income. The additional PTKP is limited to three persons, each adding Rp4.5 million per year.

Therefore, supporting a nephew does not provide any extra tax exemption. This limits the reduction of taxable income and the amount of income tax owed.