Indonesia Payroll Compliance Map

Indonesia Payroll Compliance Map

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E-mail: jkt4ww@evershinecpa.com
or
Contact us by WeChat or Skype or WhatsApp in the day-work-time of Taiwan (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speaks in both English and Chinese.
WeChat: Judy_Evershine
skype: Judy Wang

WWT – Indonesia Payroll Income Tax Deduction

WWT-IN-01 WWT Tax Entity

Question from client:
Is the Indonesia salary income tax levied in national or province? Or both national and province?
Are the national and province personal income tax levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
The national government generally enacts all laws relating to income tax.

2022 Income Tax Rate (with NPWP)

Ranges of Annual Income (Rp) Tax Rate
0 60,000,000 5%
60,000,001 250,000,000 15%
250,000,001 500,000,000 20%
500,000,001 5,000,000,000 30%
5,000,000,001 And above 35%

2022 Income Tax Rate (without NPWP)

Ranges of Annual Income (Rp) Tax Rate
0 60,000,000 6%
60,000,001 250,000,000 18%
250,000,001 500,000,000 24%
500,000,001 5,000,000,000 36%
5,000,000,001 And above 42%

*20% higher than with NPWP.

WWT-IN-02 Registration

Question from client:
The Indonesia salary income tax collection is under the jurisdiction of which government unit?
The registration of the Indonesia salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:
Income tax in Indonesia is administered and payable to the Directorate General of Taxation of Indonesia.
Employers must register for a tax identification number card (Nomor Pokok Wajib Pajak) NPWP and with the local tax office (KPP) in the areas where they operate.
Registration can be made in the following method:

  1. Submit to tax office
  2. By post
  3. Notary appointed by the DGT
  4. Online ereg.pajak.go.id

WWT-IN-03 WWT Order (OD)

Question from client:
What is the order of Indonesia salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare?
Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit First (DF): Make monthly payments then file the required forms.

WWT-IN-04 Mechanism of Filing (MOF)

Question from client:
Indonesia salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Website URL?

Answer from Evershine RD:
Employers must report data regarding income tax withheld and paid for a month by the 20th day of the following month using a form known as the SPT Masa PPh Article 21/26 (Notification Letter of a Period’s Income Tax for Article 21 and/ or Article 26.

  1. make proof of withholding PPh Article 21 through the application of e- SPT PPh Article 21;
  2. make the deposit of Article 21 Income Tax that has been deducted using a billing code with the MAP code and the deposit type code 411121-100.
  3. submit the SPT Period PPh 21 report online through the Directorate General of Taxes e-filing channel on the tax.go.id page to upload csv file or the designated official Tax Application Service Provider (PJAP).

WWT-IN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the Indonesia salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Employers must make monthly remittances of withheld income tax by the 10th day of the month after the month when payments were made for which the tax was withheld and must pay the withheld tax to the government either electronically or at an approved bank.

BNF – Deduction of Employee Social Welfare

BNF-IN-01 BNF Entity

Question from client:
Indonesia’s social insurance, medical insurance, pensions, and other employee social welfare levy, is it national?Is it province? Or is there a national plus province?
If there is a national and province, are they levied separately? or levied together? What is the withholding tax rate?

Answer from Evershine RD:

The national government generally enacts all laws relating to social programs and taxes.

Types of Social Security Employer Employee
Old Day Security (JHT) 3.7% 2%
Work Accident Security (JKK) Workplace risk Rate 0%
Very low risk JKK1 0.24%
Low risk  JKK2 0.54%
Moderate risk JKK3 0.89%
High risk  JKK4 1.27%
Very high risk  JKK5 1.74%
Death Security (JKM) 0.3% 0%
Pension Security (JP) 2% 1%
Health Insurance (JKN-KIS) 4% 1%

BNF-IN-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Answer from Evershine RD:

Types of Social Security Government agency Registration form
Old Day Security (JHT) Institute of Social Security Employment (BPJS Ketenagakerjaan) Form 1 PU
http://www.bpjsketenagakerjaan.go.id
Work Accident Security (JKK)
Death Security (JKM)
Pension Security (JP)
Health Insurance (JKN-KIS) Institute of Social Security Health (BPJS Kesehatan) Form Pemas-4b
https://new-edabu.bpjs-kesehatan.go.id/new

 BNF-IN-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for Indonesia employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Answer from Evershine RD:

Same period: Report and pay at the same time.

BNF-IN-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for Indonesian employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Types of Social Security Deadline Filing form
Old Day Security (JHT) 15th of the following month Form 2 PU and Form 2a PU
Work Accident Security (JKK)
Death Security (JKM)
Pension Security (JP)
Health Insurance (JKN-KIS) 10th of the following month Online filing

BNF-IN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Indonesia employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:

Types of Social Security Deadline Website
Old Day Security (JHT) 15th of the following month  

http://www.bpjsketenagakerjaan.go.id
Work Accident Security (JKK)
Death Security (JKM)
Pension Security (JP)
Health Insurance (JKN-KIS) 10th of the following month https://bpjs-kesehatan.go.id/bpjs/

Below is the payment method:

  1. Through the BPJS Employment Office.
  2. Through the nearest BPJS Ketenagakerjaan (Jamsostek) Branch Office.
  3. Through the BPJS Ketenagakerjaan e-Payment System (EPS) from ATMs that have collaborated with BPJS Ketenagakerjaan EPS, such as Bank Mandiri, BRI, BNI. To use this service, you must register with the EPS BPJS Ketenagakerjaan service and create a dues code.
  4. Contributions to the health insurance program and reports of contributions must be electronically provided to BPJS Kesehatan.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Jakarta  Evershine BPO Service Limited Corp.
E-mail: jkt4ww@evershinecpa.com
or
Contact us by WeChat or Skype or Whatsapp in the day-work-time of Taiwan (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speaks in both English and Chinese.
WeChat: Judy_Evershine
skype: Judy Wang

For investment structure relevant with multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4jkt@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable to your case.
Email address:dalechen@evershinecpa.com
LinkedIn address:Dale Chen

Additional Information

Evershine CPAs Firm Headquarters
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Tel No.: +886-2-27170515 ext. 105
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Email: kerrychen@evershinecpa.com
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(version: 2024/07)
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