PORTALJABAR, DISTRICT. GARUT - The Garut Pratama Tax Service Office (KPP) has begun implementing the Average Effective Tariff (TER) scheme for withholding Income Tax (PPh) 21. This step is in accordance with Government Regulation (PP) Number 58 of 2023 concerning Withholding Rates for PPh Article 21 above. Income in Connection with Work, Services or Activities of Individual Taxpayers, and Minister of Finance Regulation (PMK) Number 168 of 2023 concerning Guidelines for Implementing Tax Deductions on Income in Connection with Work, Services or Personal Activities.

Assistant Counselor Supervisor of the Garut Tax Office, Linda Handiani, conveyed this change at the FOKUS Volume 34 Radio Intan Streaming Talkshow on Wednesday (31/01/2024). According to him, TER will make it easier for tax cutters to calculate PPh Article 21 monthly, except for December.

"So for January to November there is an average effective rate, making it easier for tax cutters to calculate taxes on their employees like that," said Linda.

Linda explained the differences in applying the TER scheme to permanent and non-permanent employees. Permanent employees will be grouped based on income range and taxpayer status, while non-permanent employees will be grouped based on wages received.

Previously, the calculation of PPh 21 used 5 tariff layers and was in accordance with income ranges. With the TER scheme, income tax calculations use only one rate, namely TER or Average Effective Rate.

"We hope that with the convenience provided by this regulation, it will have an impact on higher compliance from taxpayers," he said. (rdp*)