On 18 September 2026, the DJP confirmed that stipends (uang saku) received by participants of the 2026 National Internship Program (Program Magang Nasional) are exempt from Income Tax under Article 4(3) of the Income Tax Law. The clarification applies to stipends funded by the state budget (APBN) or regional budgets (APBD) and aims to support youth employability initiatives without creating tax compliance burdens for interns or organizing entities.
Key Takeaways
- Tax Exemption Scope: Stipends from government-funded internship programs are non-taxable; however, stipends from private-sector programs not covered by the scheme remain taxable.
- Reporting Obligations: Organizers must still report stipend payments in Coretax using designated non-taxable income codes to ensure transparency and audit readiness.
- Participant Implications: Interns do not need to include stipend amounts in their Annual Tax Returns, simplifying compliance for young workforce entrants.
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