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5 percent income tax for single people, finance ministry explains

Tempo - January 4, 2023

Riani Sanusi Putri, Jakarta – The Finance Ministry's special staff for strategic communication Yustinus Prastowo on Wednesday elaborated on the Ministry's income tax (PPh) calculation subjecting people who are single or are not yet married with a monthly income of Rp5 million. He insists this regulation arose from the principle of fairness.

"This tax burden is fair [and based accordingly on people's] ability," Yustinus wrote in his percent Tweet on January 4.

He elaborated that taxpayers with a monthly income of Rp5 million or Rp60 million annual income are subject to a 5 percent income tax with a taxable income or PKP of Rp6 million. Thus, the income tax added with the PKP would see single working people's earning get cut Rp300,000 annually.

Meanwhile, the income tax of married taxpayers with a single child that has a monthly income of Rp5 million will not be subjected to the PPh. and with the PTKP or non-taxable income of Rp63 million annually, the PKP and PPh are 0 percent respectively.

As previously mentioned by Finance Minister Sri Mulyani on her Instagram account, she explained that PPh targets both the wealthy and the poor. In fact, she said, someone with an annual salary of over Rp5 billion is subjected to 35 percent tax. That figure is up from the previous 30 percent.

Source: https://en.tempo.co/read/1675616/5-percent-income-tax-for-single-people-finance-ministry-explain