How to Calculate Income Tax Article 21 (PPh 21)

14:11

Recently, I get a little bit confuse when the interviewer asked me regarding Tax.
This actually has been thought in University but I forgot cause it's a long time ago (not really a long time hehe). Today I re-read my books, explore any information through google how to calculate Income Tax Article 21 (PPh 21).

Based on the understanding that I got, here are several steps in calculating PPh 21:

1) Calculate the gross salary monthly
It includes basic salary, transport allowance, housing allowance, accidents insurance premium, life insurance premium, leave allowance, THR allowance, travel allowance, bonuses, and other insurance which is regularly.

2) Calculate the total deductions
The deductions consist of functional expense (5% from basic salary), pension contribution (5.7 %, the 3.7% is paid by company and 2% paid by employee), and pension plan.

3) Calculate net salary monthly
Gross salary deducted by the total of deductions (No.1 - No.2)

4) Calculate net salary annually
Net Salary in a month times twelve (No.3 x12)

5) Calculate Non-Taxable Income (PTKP)

Employee Status
Non-Taxable Income (PTKP)
Single
24.300.000
Married, No Child
26.325.000
Married, 1 Child
28.350.000
Married, 2 Children
30.375.000
Married, 3 Children
32.400.000


6) Calculate Taxable Income
Net salary in a year deducted by non-taxable income (PTKP)

7) Calculate Income Tax (PPh 21) based on the Tax Rate (Tarif Pajak)

Level of Taxable Income
Tax Rate
s/d 50 juta
5%
> 50 juta s/d 250 juta
15%
> 250 juta s/d 500 juta
25%
> 500 juta
30%

8) Calculate Income Tax (PPh 21) due (current month)
Step number 7 divided by 12.


Example

Mr. Edward is an employee of PT. Rencana, he's married with no children with the salary 3.000.000 in a month (April 2011).
- Worker's Social Society Program Premium (Premi Jamsostek)        0.50%
- Life Insurance Premium (Premi Jaminan Kematian)                         0.30%
- Pension Plan (Iuran Jaminan Hari Tua)                                             5.70%
- Pension Contribution 150.000/month (100.000 is paid by PT rencana and the rest is paid by Mr. Edward)

The calculation of Income Tax Article 21 (PPh 21) in April 2011.


*Functional Allowance (Biaya Jabatan) is the costs of obtaining, collecting, and maintaining the income received from the employer by any permanent employees regardless of rank or position.

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1 comments

  1. Unknown29 October 2018 at 19:12

    Hi

    With the above example can you show the accounting treatment for pph21?

    ReplyDelete

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