Universitas Sumatera Utara (USU), together with the Tax Service Office (KPP) Madya Dua Medan, held a socialization on Tuesday (02/20/2024) that thoroughly explored the latest provisions on the calculation of Income Tax (PPh) Article 21, based on Government Regulation (PP) Number 58 of 2023. It took place online through a Zoom meeting.

PP Number 58 of 2023 concerns Withholding Rates for Income Tax, Article 21 on Income in Connection with Work, Services, or Activities of Individual Taxpayers. The government issued the regulation on December 27, 2023, and it came into effect on January 1, 2024.

The socialization was opened with remarks from the Vice Rector II for Human Resources and Finance, Muhammad Arifin Nasution, S.Sos., M.SP., who stated that PP No. 58 of 2023 was issued to implement the provisions of Article 21 paragraph (5) of Law No. 7 of 2021 concerning Harmonization of Tax Regulations (HPP Law).

"We must participate in this socialization because it relates to our income tax withholding. So, we can find out about PP Number 58 of 2023," said Arifin.

Muhammad Arifin Nasution, S.Sos., M.S.P. also explained that the regulation provides convenience and simplicity in fulfilling taxpayers' tax obligations for withholding Income Tax Article 21. However, adjustments are still needed to the mechanism of withholding and imposition of Income Tax Article 21.

"We will later get an explanation from KPP Madya Dua Medan on the procedures for deductions in the policy. Therefore, I invite all of us to ask questions actively," Arifin explained.

Meidijati, as the Head of KPP Madya Dua Medan, ensured that this PP does not create a new tax burden because, at the end of the year, it is still calculated at the rate of Article 17 paragraph (1) letter of the Income Tax Law. She also briefly reviewed the Average Effective Rate (TER) scheme stipulated in Government Regulation 58 of 2023 and Minister of Finance Regulation Number 168 of 2023.

"The background of this regulation is not intended to create a higher tax rate. So, there is no change in tax; what is changed is the simplified calculation mechanism," Meidijati emphasized.

Muhammad Fadli, a representative of KPP Madya Dua Medan, explained material related to PMK Number 168 of 2023, which highlighted that the simplification of calculations contained in PP Number 58 of 2023 is realized in tax calculations, only multiplying gross income by the effective rate or in this rule introduced by TER.

Author: Bambang Riyanto - Public Relations

Interviewee: Muhammad Arifin Nasution S.Sos., M.SP. - USU Vice Rector II

Photographer: Amri Simatupang - Public Relations