On 15 September 2026, Kanwil DJP Sulselbartra conducted a consultation session with the Regional People’s Representative Council (DPRD) of Jeneponto to explain the application of PPh Article 21 TER (Tarif Efektif Rata-rata) for civil servants and regional government employees. The TER mechanism simplifies monthly withholding tax calculations by using effective average rates based on annual gross income brackets, replacing the previous progressive monthly calculation. This session aimed to ensure accurate payroll withholding by regional treasuries and prevent under- or over-withholding that leads to annual tax return discrepancies.
Key Takeaways
- TER Calculation Method: Monthly withholding is derived by dividing the annual tax liability (based on TER rates) by 12, adjusted for non-taxable income (PTKP) and allowable deductions.
- Employer Obligations: Regional government payroll units must update their systems to apply TER rates correctly and issue proper withholding slips (Bukti Potong PPh 21) to employees.
- Year-End Reconciliation: Employees with multiple employers or changing PTKP status must file annual tax returns to settle any differences between TER withholding and actual tax liability.
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