Tax Office awaits Finance Minister Purbaya's directive on JHT tax evaluation
Jakarta (ANTARA) - Director General of Taxes Bimo Wijayanto said his office is still awaiting instructions from Finance Minister Purbaya Yudhi Sadewa regarding the evaluation of the tax policy on Old-Age Security (JHT) benefits.
“Frankly, we are still waiting for instructions, because this actually falls under the remit of the Directorate General of Fiscal Strategy,” Bimo said when met at his office in Jakarta on Monday.
Nevertheless, the Directorate General of Taxes (DJP) has submitted various data for the government’s consideration. Meanwhile, the decision on any change to the JHT tax policy remains under the authority of the Fiscal Strategy Agency of the Ministry of Finance.
He explained that according to the latest data, around 95 per cent of JHT beneficiaries currently pay no tax because the value of their payouts is below Rp50 million.
“The data has already been presented to the Minister as well, showing that 95 per cent of JHT recipients pay zero per cent tax because their payouts are below Rp50 million,” he explained.
Bimo further stated that DJP has also mapped the distribution of JHT recipients based on the size of benefits received, ranging from those exempt from tax to groups with larger benefits subject to rates in accordance with prevailing regulations.
Should the government decide to raise the threshold for tax-free JHT benefits, for example from Rp50 million to Rp100 million, DJP is ready to adjust its implementation accordingly.
According to him, the most important thing is that all stakeholders, including trade unions, share the same understanding of the policy to be applied.
“For us, it depends on the order. If the tax-free JHT threshold is to be raised, say from Rp50 million to Rp100 million, we will follow the instruction. What matters is that everyone understands the impact of its implementation. The public understands, the labour unions understand, the relevant ministries understand, and BPJS understands too,” Bimo continued.
On the other hand, DJP continues to strengthen coordination with BPJS Ketenagakerjaan to ensure that tax compliance and participation in employment social security run in harmony.
As previously reported, Finance Minister Purbaya Yudhi Sadewa said he would request more complete data from BPJS Ketenagakerjaan regarding the claim that around 95 per cent of JHT withdrawals are subject to zero per cent final tax.
The move follows up on a meeting between the Finance Minister and the President’s Special Adviser for Employment and Workers’ Welfare, Said Iqbal.
“From what I can see, around 95 per cent of the existing data is already covered at zero per cent tax. But Mr Said says the data is not entirely accurate, so I will ask BPJS Ketenagakerjaan for more complete data,” Purbaya said.
At that meeting, Said Iqbal proposed an evaluation of the taxation of JHT benefits, a review of the progressive tax mechanism for workers who withdraw JHT several times due to layoffs, an adjustment of the taxable benefit threshold, and changes to the tax treatment of pension benefits, religious holiday allowances (THR), and severance pay.