Did You Know, It Turns Out THR (Religious Holiday Allowance) Is Also Taxable, Here Are the Provisions

Dream - Idul Fitri (Eid al-Fitr) is synonymous with giving Religious Holiday Allowance (THR) to civil servants, private employees, and workers. But did you know that THR is also subject to tax?

THR is included in income tax (PPh21), especially for individual taxpayers. Therefore, THR is subject to tax deductions.

"THR is included in the income of workers/employees as well as the object of income tax (PPH21), especially for individual taxpayers," quoted from the Instagram account @kemnaker, Sunday, April 10, 2023.

The deduction of PPh 21 on salaries, THR, and bonuses for each employee is not the same. It depends on the amount of taxable income.

PPh 21 deductions are also influenced by the possession of a Taxpayer Identification Number (NPWP). So, if the value of THR exceeds the Non-Taxable Income (PTKP) provisions, then tax must be paid.

On the other hand, if the requirements are not met, the employee's THR will not be subject to tax deductions.

“If the THR exceeds the Non-Taxable Income, it will be subject to PPh article 21 deductions,” he said.

PTKP itself is the income of taxpayers that is exempted or not subject to PPh 21. The function of PTKP in the calculation of employee taxes is as a deduction that can reduce income before being subject to tax rates.

The PTKP status for each taxpayer can be different, as it is determined by marriage and the number of dependents. The determination of PTKP is carried out by the government, so it can change at any time, in accordance with applicable policies.

Currently, PTKP is based on the Minister of Finance Regulation No. 101/PMK.010/2016. The provisions are as follows:

Unmarried taxpayer: Rp 54,000,000.

Married taxpayer, plus Rp 4,500,000.

Taxpayer with direct lineal family dependents, adopted child, or stepchild, plus Rp 4,500,000. Maximum of 3 dependents.

If the husband and wife's income is combined, then the married taxpayer's PTKP is plus Rp 54,000,000.

The details of PTKP are as follows:

1. Single Taxpayer Group

Taxpayer without dependents, the rate is Rp 54,000,000

Taxpayer with 1 dependent, the rate is Rp 58,500,000

Taxpayer with 2 dependents, the rate is Rp 63,000,000

Taxpayer with 3 dependents, the rate is Rp 67,500,000

2. Married Taxpayer Group

Married taxpayer without dependents, the rate is Rp 58,500,000

Married taxpayer with 1 dependent, the rate is Rp 63,000,000

Married taxpayer with 2 dependents, the rate is Rp 67,500,000

Married taxpayer with 3 dependents, the rate is Rp 72,000,000

3. Married Taxpayer Group with combined spouse's income

Married taxpayer with combined spouse's income, without dependents, the rate is Rp 112,500,000

Married taxpayer with combined spouse's income, with 1 dependent, the rate is Rp 117,000,000

Married taxpayer with combined spouse's income, with 2 dependents, the rate is Rp 121,500,000

Married taxpayer with combined spouse's income, with 3 dependents, the rate is Rp 126,000,000

Source: Merdeka.com