Calculation of PPh 21 with the TER Scheme for Employees Who Pay Zakat

Paying zakat (obligatory donations) before the Eid al-Fitr holiday is an obligation for Muslims. Several conditions are required to pay zakat, namely being Muslim, independent, and able to pay zakat. Then, can all the zakat paid by employees be a deduction in calculating employee income tax (PPh)?

In relation to tax provisions, the imposition of zakat on gross income has been regulated in several provisions, namely:

Government Regulation Number 60 of 2010;
Minister of Finance Regulation Number 254/PMK.03/2010; And
Regulation of the Director General of Taxes Number PER-6/PJ/2011.

Apart from that, along with the new calculation of income tax on Holiday Allowances (THR), Minister of Finance Regulation Number 168 of 2023 also regulates the charging of zakat using the TER scheme. In accordance with the PMK, zakat/obligatory religious donations paid through employers to authorized amil zakat agencies, amil zakat institutions and religious institutions can be a deduction from gross income in calculating Income Tax Article 21 (PPh 21) for the last period.

Zakat/obligatory religious donations paid by employees themselves to authorized amil zakat agencies can be a deduction from gross income in the Annual Personal Income Tax Return. The zakat referred to is only income zakat in accordance with Government Regulation Number 60 of 2010.

Thus, there are differences in calculating PPh 21 for employees, especially regarding zakat charges, which are as follows:

Example

Mr. R works at PT ABC and earns a monthly salary of IDR 10,000,000.00 and pays pension contributions of IDR 100,000.00 per month. Mr R is married and has no dependents (PTKP K/0). He pays zakat of IDR 200,000 per month through PT ABC to the Amil Zakat Agency which is authorized by the government.

The calculation of PPh 21 per month for Mr. R is as follows:

Mr. R's PTKP status is K/0, so the calculation of PPh 21 for the period Jan-Nov 2024 uses TER Category A of 2%.

PPh 21 per month =IDR 10,000,000 x 2%

PPh 21 per month = IDR 200,000/month

Calculation of PPh 21 for the December Tax Period is calculated as follows:

Salary	120,000,000
Deduction:
1. Occupational Expenses	(6,000,000)
2. Pension Contribution (12 x 100,000)	(1,200,000)
3. Zakat (12 x 200,000)	(2,400,000)
Deduction Amount	(9,600,000)
Annual Net Income	110,400,000
PTKP (K/0)	(58,500,000)
PKP a year	51,900,000
Annual PPh 21	2,595,000
PPh 21 which has been deducted (Jan – Nov)	2,200,000
PPh 21 December Period	395,000

income-tax , income-tax-article-21 , individual-income-tax-rate

Article / 05 Apr 2024 /Aldhila Salma Rihadatul Aisy, Risandy Meda Nurjanah