The Directorate General of Taxes (DGT) introduced a new form of income tax (PPh) deduction proof (Bupot), namely monthly Bupot PPh 21 (Form 1721-VIII) through the ratification of the Director General of Taxes Regulation Number PER-2/PJ/2024 (PER 2/2024 ). Monthly PPh 21 Bupot is Bupot given to permanent employees or retirees who receive pension money periodically. This type of Bupot comes into effect for the January 2024 tax period.

The presence of the monthly PPh 21 Bupot complements the new provisions regarding PPh 21 for permanent employees and retirees, as regulated in Minister of Finance Regulation Number 168 of 2023 (PMK 168/2023). Based on Article 15 paragraph (1) PMK 168/2023, PPh 21 deductions for permanent employees and retirees must be calculated using the effective monthly rate (TER Monthly) for all periods except the last tax period.

In connection with this, the monthly PPh 21 Bupot is made on income received or accrued for each tax period other than the last tax period. One PPh 21 Bupot can only be used for one income recipient, one tax object code and one tax period.

Tax withholding agents are required to provide monthly PPh 21 Bupot form 1721-VIII to permanent employees or retirees no later than 1 month after the tax period ends. Specifically for the monthly PPh 21 Bupot for the period January 2024, tax withholding agents can give the Bupot to permanent employees or retirees no later than March 31 2024.

What is e-Bupot PPh 21 Monthly?

Just like Bupot in general, e-Bupot PPh 21 is a document created by tax withholding agents as proof of withholding PPh 21 and this document shows the amount of PPh 21 that has been withheld. The addition of the word 'e' in front of the acronym 'Bupot' indicates that e-Bupot is an electronic document created using the e-Bupot 21/26 application which has been provided by the DGT.

However, not all tax withholding agents are required to make monthly PPh 21 Bupots electronically. The provisions of Article 6 paragraph (3) PER 2/2024 regulate that e-Bupot PPh 21/26 and the Periodic Income Tax Return (SPT Masa PPh) 21/26 in the form of electronic documents must only be used by tax withholding agents who:

1. Make a non-final PPh 21 Bupot or PPh 26 - (Form 1721-VI) with more than 20 documents in 1 tax period;
2. Make a final PPh 21 Bupot - (Form 1721-VII) with more than 20 documents in 1 tax period;
3. Make a Monthly PPh 21 Bupot - (Form 1721-VIII) and/or PPh 21 Bupot for permanent employees or retirees who receive money related to pensions periodically - (Form 1721-A1) with more than 20 (twenty) documents in 1 ( one) tax period; and/or
4. Make tax deposits with tax deposit letters and/or proof of transfer of more than 20 (twenty) documents in 1 (one) tax period.

For withholding agents who do not meet the above provisions, they can use proof of PPh 21/26 Withholding and  SPT Masa PPh 21/26 in the form of paper forms or electronic documents.

Tax withholding agents who have submitted SPT Masa PPh 21/26 in the form of electronic documents may no longer submit SPT Masa PPh 21/26 using paper forms for subsequent tax periods.

Steps to Use e-Bupot 21/26

In general, there are 5 steps in using the e-Bupot 21/26 application, namely:

1. Login. The e-Bupot 21/26 application is a web-based application so it does not require a special installer. To be able to use it, taxpayers simply log in to the page https://djponline.pajak.go.id.
2. Bupot. Bupot creation can be done using two methods, namely key-in and Excel data import scheme. However, before recording the Bupot, make sure the taxpayer has set the name and position of the signatory in the settings menu.
3. Post. Posting is the activity of transferring Bupot data that has been created/published into a draft SPT or to update data on the SPT.
4. Payment. After posting, the next step is to record payment data on the SPT. This process is required for taxpayers who have income tax deposits in the form of State Revenue Transaction Number (NTPN) or transfer.
5. Submit SPT. Submitting SPT is the final series of the PPh 21/26 withholding business process. This process is carried out after the process of recording proof of deduction and proof of deposit has been completed.

You can see complete instructions for using the e-Bupot 21/26 application here.

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