On December 27, 2023, the Government of Indonesia issued
Regulation No. 58 of 2023 on Article 21 Income Tax Deduction Rates
for Income arising from Works, Services, or Activities of
Individual Taxpayers ("GR 58"). GR 58
became effective as of January 1, 2024. Following the issuance of
GR 58, on December 29, 2023 the Minister of Finance issued
Regulation No. 168 of 2023 on Implementation Guidelines for
Withholding of Income Tax arising from Works, Services, or
Activities of Individual Taxpayer ("Regulation
168").
Article 21 Income Tax rates are governed in Law No. 7 of 1983
dated December 31, 1983 on Income Taxes as lastly amended by
Government Regulation in Lieu of Law No. 2 of 2022 dated December
30, 2022 on Job Creation which is made into a law under Law No. 6
of 2023 dated March 31, 2023 (collectively, the
"Income Tax Law"). In relation to this,
GR 58 and Regulation 168 were issued mainly to simplify the
implementation of Article 21 income tax calculation and
