RSM INDONESIA CLIENT ALERT – 1 December 2025

Minister of Finance Regulation No 72 Year 2025 dated 20 October 2025 (PMK-72) has amended Minister of Finance Regulation No 10 Year 2025 concerning Article 21 Income Tax on Certain Income Borne by the Government in the Context of Economic Stimulus for Fiscal Year 2025 (PMK-10).

PMK-72 expands the business sectors previously eligible for the Article 21 income tax facility that was regulated by PMK-10 so that employees in the tourism sector are now eligible (subject to meeting the stipulated criteria).

WHEN DOES IT APPLY AND FOR HOW LONG?

It is applicable on 28 October 2025. The facility applies up to and including the December 2025 tax period.

WHICH SECTORS ARE INCLUDED?

The facility is available for certain employees that work for certain employers. “Certain employers” are those employers conducting business activities in the following industries based on the main business field classification code/KLU (Klasifikasi Lapangan Usaha) recorded in the Indonesian Tax Authority’s (ITA) system (Coretax):

  • Footwear, textile and apparel, furniture, leather and items made of leather (commencing January 2025 as per PMK-10); and
  • Tourism (commencing October 2025). 

The eligible KLU are listed in the appendix to PMK-72.

WHICH EMPLOYEES ARE ELIGIBLE?

PMK-72 does not amend the criteria per PMK-10 for stipulating which employees are “certain employees”.

That is, employees are eligible to receive the facility for Article 21 income tax borne by Government (PPh 21 DTP) if:

a) The employee has a Tax Identification Number (NPWP) and/or NIK that is integrated into Coretax.

b) For permanent employees:

  • Earns fixed and regular gross income, such as salary and allowances, and other fixed/regular compensation including benefits in kind, that do not exceed IDR 10 million in January 2025 (if already employed prior to January 2025); 
    or the 1st month of work (if the employee is newly employed in 2025);
  • The employee does not receive other PPh 21 DTP. 

c) For non-permanent employees:

  • Earns wages that, on average, do not exceed IDR 500,000 per day if the wage is earned on a daily, weekly, unit, or piece basis; or the amount does not exceed IDR 10 million per month if the wage is received on a monthly basis;
  • Does not receive other PPh 21 DTP. 

KEY IMPLEMENTATION POINTS 

Significant points related to the implementation of PMK-72 are:

  1. General provisions stipulated by PMK-10 that also apply under PMK-72:
  • PPh 21 DTP is paid to the employee at the time of payment of the related income, including if the Article 21 income tax would usually be an allowance or borne by the employer.
  • PPh 21 DTP is not a tax object.
  • A bukti pemotongan (withholding evidence) for the PPh 21 DTP must be provided by the employer.
  • If the PPh 21 DTP results in an overpayment for certain employers other than those operating in the tourism industry, then the overpayment cannot be refunded to the employee or compensated to the employer.
  1. Additional provisions stipulated by PMK-72 for employees working for employers in tourism industries:
  • If the PPh 21 DTP exceeds the Article 21 income tax payable for the year, the excess income tax can be refunded by the employer to employees up to the amount that was not borne by the Government.
  • If there is an overpayment for the employer, the excess payment that originates from income tax that was not borne by the Government can be compensated to the next Tax Period.
  • To be able to compensate the portion of the excess payment that is not PPh 21 DTP, the employer shall prepare:
  • A calculation worksheet and submit it through a designated channel in Coretax;
  • Additional withholding evidence for the portion of PPh 21 DTP and report that in Article 21/ 26 monthly tax return.

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