Tax Authority Evaluates Government-Funded PPh 21 Incentive for

Indonesia's Directorate General of Taxes (DJP) is evaluating the government‑funded PPh 21 incentive scheme. The review took place on 16 October 2025 in Jakarta. The incentive has previously been granted to employees in selected sectors, such as manufacturing.

Dirjen Bimo Wijayanto said the incentive aims to boost wage spending, prevent layoffs, and improve productivity. The tax authority reports the policy’s impact to the finance minister. Expansion to the tourism sector is being considered but lacks a formal regulation.

If deemed effective, the incentive could enhance labor stability and support growth in targeted industries. However, benefits apply only when employers initiate the tax withholding. The final decision will shape future payroll tax policies. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814507/djp-evaluasi-insentif-pph-pasal-21-ditanggung-pemerintah).