Worker's Salary at IKN is Tax-Free Until 2035

Mau Kerja dan Tinggal di IKN, Gaji Pegawai Bebas Pajak PPh Sampai 2035

I want to work and live in IKN, Employee Salary Tax-Free until 2035.

Dream - Not only infrastructure, the government is also preparing a special strategy to develop the Nusantara Capital Area (IKN) in East Kalimantan. One of them is an enticing incentive for employees. The government plans to exempt the salaries of workers in the Nusantara Capital Area (IKN) from the income tax deduction Article 21 (PPh 21). Not to mention, this tax-free salary applies until 2035. Special Staff to the Minister of Finance in Tax Compliance Yon Arsal said that this policy is stated in Article 53 of Government Regulation (PP) Number 12 of 2023. Where the payment of PPh 21 is borne by the government (DTP).

The translation of the given 'Bahasa' text to 'English' while preserving any html tags is: "Taxes are borne by the Government".

"So those who move there, work there, reside there, their income tax is covered by the government," said Yon in Jakarta, quoted from Merdeka.com, Friday, 1 December 2023.

Yon emphasizes that all employees who move and settle in IKN will receive their full salary without any income tax deductions. "The taxes will be covered by the government for a certain period of time," said Yon.

Worker's Salary at IKN is Tax-Free Until 2035

"If it's for employees, then Income Tax Article 21 should be paid by us. This is our Income Tax, for example, a salary of Rp 100, tax deduction of Rp 5. Now, the 5 is borne by the government, so I receive Rp 100. The salary is full, the Income Tax is borne until 2035," explained Yon.

This provision will take effect immediately once business activities and government operations at IKN are operational.

"Not only Civil Servants (ASN) or State Civil Servants (PNS), this provision also applies to all private sector workers who have the status of outsourcing employees."

"Previously, President Jokowi explained that the relocation of the capital city to East Kalimantan aims for economic and population distribution. Until now, the center of economic growth in Indonesia is still dominated by regions in Java Island."

"On the contrary, we don't want Java-centric. We want Indonesia-centric. Because we remember that 58 percent of the economy is in Java, 58 percent of the 17,000 islands we have, 58 percent is in Java Island, so we want Indonesia-centric.""

"jelasnya." translates to "clearly."

Although so, he said that the development of IKN cannot be completed in just one or two years. Jokowi mentioned that the development of IKN must be sustainable in order to achieve economic equality and population distribution.

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