Types of PPh 21 Withholding for Permanent Staff in Final Period

The Directorate General of Taxation released an infographic detailing the types of PPh 21 (income tax) withholding applicable to permanent employees during their final tax period for fiscal year 2025. The graphic lists three withholding categories.

Regular withholding (monthly deduction based on progressive rates) continues throughout the year. Final withholding (final deduction) applies when an employee’s annual taxable income is already settled, so no further monthly deduction is needed. End‑year adjustment reconciles any over‑ or under‑withheld amounts before the annual tax return (SPT) is filed.

For taxpayers, understanding these three types ensures accurate tax compliance and avoids penalties. Employers must apply the appropriate withholding so the final tax report reflects each employee’s fiscal position.