Non-Taxable Income (Penghasilan tidak kena pajak/PTKP) is a gross income deduction given to individual domestic taxpayers before calculating the income tax, which is not final. Individuals who have an income under the regulated PTKP will not be subject to Income Tax. In addition, Indonesia’s PTKP is regulated under Law No. 07 of 1983 concerning Income Tax, last amended by Law No. 07 of 2021 concerning Harmonization of Tax Regulation (“Income Tax Law”).
As is well known, tax regulations, notably those pertaining to non-taxable income, are constantly changing. For the last 20 years, Indonesia’s PTKP has undergone several amendments as follows:
| No | Effective Period | Regulation | Non-Taxable Income (PTKP) | Additional Notes |
| 1 | 01 Jan 2001 – 31 Dec 2004 | Article 7 Law No. 17 of 2000 | IDR2.880.000,00/year | For individual taxpayers |
| IDR1.440.000,00/year | Additional for married taxpayers | |||
| IDR2.880.000,00/year | Additional for married taxpayers with joint income | |||
| IDR1.440.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 2 | 01 Jan 2005 – 31 Dec 2005 | Article 1 Ministry of Finance Decree No. 564 / KMK.04 / 2004 | IDR12.000.000,00/year | For individual taxpayers |
| IDR1.200.000,00/year | Additional for married taxpayers | |||
| IDR12.000.000,00/year | Additional for married taxpayers with joint income | |||
| IDR1.200.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 3 | 01 Jan 2006 – 31 Dec 2008 | Article 1 Ministry of Finance Regulation No. 137 / PMK.03 / 2005 | IDR13.200.000,00/year | For individual taxpayers |
| IDR1.200.000,00/year | Additional for married taxpayers | |||
| IDR13.200.000,00/year | Additional for married taxpayers with joint income | |||
| IDR1.200.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 4 | 01 Jan 2009 – 31 Dec 2012 | Article 7 Law No. 36 of 2008 | IDR15.840.000,00/year | For individual taxpayers |
| IDR1.320.000,00/year | Additional for married taxpayers | |||
| IDR15.840.000,00/year | Additional for married taxpayers with joint income | |||
| IDR1.320.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 5 | 01 Jan 2013 – 31 Dec 2014 | Article 1 Ministry of Finance Regulation No. 162 / PMK.011 / 2012 | IDR24.300.000,00/year | For individual taxpayers |
| IDR2.025.000,00/year | Additional for married taxpayers | |||
| IDR24.300.000,00/year | Additional for married taxpayers with joint income | |||
| IDR2.025.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 6 | 01 Jan 2015 – 31 Dec 2015 | Article 1 Ministry of Finance Regulation No. 122 / PMK.010 / 2015 | IDR36.000.000,00/year | For individual taxpayers |
| IDR3.000.000,00/year | Additional for married taxpayers | |||
| IDR36.000.000,00/year | Additional for married taxpayers with joint income | |||
| IDR3.000.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
| 7 | 01 Jan 2016 – Until Now | Article 1 Ministry of Finance Regulation No. 101 / PMK.010 / 2016 | IDR54.000.000,00/year | For individual taxpayers |
| IDR4.500.000,00/year | Additional for married taxpayers | |||
| IDR54.000.000,00/year | Additional for married taxpayers with joint income | |||
| IDR4.500.000,00/year | Additional for each blood relative and family by marriage in a straight line, as well as adopted children who are completely reliant on a maximum of three people per family | |||
Non-Taxable Income Calculation
According to the latest Income Tax Law, the following are the calculation of non-taxable income based on the employee’s status.
| No | Status | Code | Non-Taxable Income |
| 1 | Not Married (Tidak Kawin – TK) | TK/0 (No Dependant) | IDR54.000.000,00 |
| TK/1 (One Dependant) | IDR58.500.000,00 | ||
| TK/2 (Two Dependant) | IDR63.000.000,00 | ||
| TK/3 (Three Dependant) | IDR67.500.000,00 | ||
| 2 | Married (Kawin – K) | K/0 (No Dependant) | IDR58.500.000,00 |
| K/1 (One Dependant) | IDR63.000.000,00 | ||
| K/2 (Two Dependant) | IDR67.500.000,00 | ||
| K/3 (Three Dependant) | IDR72.000.000,00 | ||
| 3 | Married with Joint Income (Kawin dengan Penghasilan Digabung – K/I) | K/I/0 (No Dependant) | IDR112.500,000,00 |
| K/I/1 (One Dependant) | IDR117.000.000,00 | ||
| K/I/2 (Two Dependant) | IDR121.500.000,00 | ||
| K/I/3 (Three Dependant) | IDR126.000.000,00 |
Please find the illustration below for a better understanding of how non-taxable income is determined.
| No | Condition | Non-Taxable Income |
|---|---|---|
| 1 | Mr. A has not married (TK/0) and has an income of IDR3.000.000,00/month or IDR36.000.000,00/year. | Mr. A non-taxable income is in the amount of IDR54.000.000,00. Thus, Mr. A is exempt from Income Tax because his annual income is less than his non-taxable income. |
| 2 | Mr. A has married, generates a single income (not joint income) of around IDR5.000.000,00/month or IDR60.000.000,00/year, and has 1 (one) child (K/1). |
Conclusion: Mr. A is exempt from Income Tax since his annual income is IDR60.000.000,00 (less than IDR63.000.000,00). |
Non-taxable income calculation might be difficult for some, especially if your organization has a large number of employees. Not to mention the ever-changing tax laws and regulations that are difficult to keep up of. ZipHR has the solution for it! Our Human Resources Integrated System (HRIS) is designed to meet your organization’s needs while adhering to the latest laws and regulations! All regulatory and tax requirements are automatically calculated and clearly detailed to provide transparency and ensure compliance is always met. That being said, we are able to processes all of your human resources process with our end-to-end HR system accurately.
