1. What is PPh 21 Tax Calculator?

Definition: This calculator estimates the PPh 21 income tax amount based on gross income and the effective tax rate (TER).

Purpose: It helps individuals and businesses in Indonesia calculate their income tax obligations under Article 21.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• PPh21 — Article 21 income tax amount (IDR)
• Gross Income — Total income before tax (IDR)
• TER — Effective Tax Rate (decimal, typically 0.05 to 0.30)

Explanation: The gross income is multiplied by the effective tax rate to determine the tax liability.

3. Importance of PPh 21 Calculation

Details: Proper PPh 21 calculation ensures compliance with Indonesian tax laws, accurate tax withholding, and proper financial planning.

4. Using the Calculator

Tips: Enter the gross income in IDR and the effective tax rate as a decimal (e.g., 5% = 0.05). The effective tax rate should be between 0 and 1.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical TER range in Indonesia?
A: TER typically ranges from 5% (0.05) to 30% (0.30) depending on income level and tax brackets.

Q2: Is gross income monthly or annual?
A: The calculator works for either, but ensure your TER matches the time period (monthly rate for monthly income, annual rate for annual income).

Q3: How do I find my effective tax rate?
A: TER is calculated by dividing your total annual tax by your total annual gross income, or use standard tax brackets.

Q4: Does this include tax deductions?
A: No, this is a simplified calculation. For precise calculations, consider PTKP (non-taxable income) and other deductions.

Q5: Is this calculator suitable for corporate taxes?
A: No, PPh 21 applies to individual income. Corporations should use PPh 25 or other relevant tax articles.