On 18 September 2026, the Ministry of Finance confirmed that stipends (uang saku) received by participants of the 2026 National Internship Program (Program Magang Nasional) are exempt from Article 21 Income Tax withholding. This policy, formalized through a Ministerial Regulation, supports the government’s youth employment strategy by reducing administrative burden on host companies and increasing net income for interns. The exemption applies only to stipends paid under the official program administered by the Ministry of Manpower.
Key Takeaways
- Exemption Scope Limited: Only stipends paid directly through the MagangHub platform qualify; supplementary allowances from host companies remain taxable.
- Reporting Still Required: Employers must report exempt stipends in the Annual Tax Return (SPT Tahunan) using specific non-taxable income codes (Penghasilan Non-Objek Pajak).
- Coretax Auto-Classification: The Coretax payroll module automatically applies the correct tax treatment when the employer selects “National Internship Program” as the payment category.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement