Controversy Over High Taxation on Holiday Bonuses, Tax Office Claims Scheme Helps Taxpayers

The debate surrounding the size of tax deductions on Eid bonuses, known as Tunjangan Hari Raya (THR), has sparked discussions within the community. In response, the Directorate General of Taxes (DJP) has provided its perspective on the use of the Average Rate (TER) Income Tax (PPh) 21 scheme, claiming it can assist taxpayers without burdening employees.

The TER scheme, implemented through Government Regulation (PP) Number 58 of 2023 and Minister of Finance Regulation (PMK) Number 168, explains that the tax deduction for THR is calculated using the monthly effective rate or TER, which is higher compared to previous months. However, Director of Tax Regulation I, Hestu Yoga Saksama, emphasized that although the tax deduction upon receiving THR may be larger, the total PPh 21 deductions throughout the year will remain the same, not adding a new tax burden for employees.

According to Hestu, the principle of tax fairness suggests that the amount of income received should be proportionate to the amount of tax deduction owed. This is considered an effort to avoid imbalances at the end of the year, where December tax deductions will be lower compared to when receiving THR.

Simulations conducted by the Tax Directorate General indicate that larger tax deductions when receiving THR will not actually burden employees. This is because by the end of the year, employees will only receive income in the form of salaries. This was explained by Director of Outreach, Services, and Public Relations, Dwi Astuti, who stressed that the application of the TER calculation method for PPh Article 21 will not increase the tax burden borne by taxpayers.

Furthermore, Dwi Astuti also explained that in December, employers will recalculate the amount of tax owed for the year using the standard PPh Article 17 rate. Thus, the tax burden borne by taxpayers will remain the same, without any additional burden due to the implementation of the TER scheme.

Therefore, the DJP provides a thorough explanation of the TER scheme and assures that its application will not financially burden employees but rather ensures tax fairness and equality in tax payments throughout the year.