2027 Tax Facilities to Include PTKP and Gov‘t-Borne Art. 21 Income Tax

JAKARTA, DDTCNews - The government is preparing a range of tax facilities and policies for 2027. These measures include an adjustment to the personal tax relief (penghasilan tidak kena pajak/PTKP in Indonesian) threshold and the continuation of government-borne (ditanggung pemerintah/DTP in Indonesian) Article 21 Income Tax.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is discussing plans to adjust the personal tax relief threshold, taking into account inflation developments. The discussions are being conducted jointly with Minister of Finance Suahasil Nazara.

"There was discussion earlier about improving the PTKP figure to adjust it to the inflation rate. We are currently calculating this together with the the minister of finance," he said, as quoted on Thursday (1/10/2026).

For information, personal tax relief refers to a deduction from net income for individual taxpayers in determining the amount of taxable income.

The personal tax relief was first regulated in 1984 and has been amended several times since. Currently, the provisions on the PTKP amount are governed by MoF Reg. 101/2016. See: Effective for 1 Decade, DGT Has No Plans to Revise the PTKP Threshold

Further, Airlangga stated that the government is also preparing the continuation of government-borne Article 21 Income Tax for workers earning below IDR10 million. He noted that the government-borne Article 21 Income Tax facility in 2027 will have broader coverage than in the current year.

The government is targeting approximately 7.5 million workers to benefit from this incentive.

Under MoF Reg. 105/2025, the government-borne Article 21 Income Tax facility this year is granted to workers in 5 industrial sectors, namely footwear; textiles and garments; furniture; leather and leather goods; and the tourism sector.

In 2027, this incentive will no longer be limited to specific sectors. The government plans to extend the government-borne Article 21 Income Tax facility to workers across all sectors with salaries below IDR10 million.

"Whereas the current facility is granted to labour-intensive industries and tourism, [the incentive] for next year will be extended to all sectors with salaries below IDR10 million," he said.

The government also plans to continue the government-borne VAT facility for the housing sector in 2027. The facility will be granted for the purchase of houses priced up to IDR2 billion.

Meanwhile, for the purchase of houses priced up to IDR5 billion, the government-borne VAT facility will be granted on the portion of the price up to IDR2 billion. The current housing government-borne VAT facility is provided under MoF Reg. 90/2025.

On another note, the government is also preparing a VAT facility policy for the jewellery industry. Airlangga said the government plans to establish purity standards for gold that may qualify for VAT relief.

Under the new standards, industry players will be able to utilise VAT relief on the supply of precious metals with a purity level of 99.9%.

Under the currently applicable provisions, namely Gov. Reg. 49/2022, the supply of gold bullion may obtain the non-collection of VAT facility provided it satisfies the criteria of having a minimum gold purity of 99.99% and is evidenced by a certificate.

"The current regulation applies to gold with a [purity level of] 99.99%. So there will be an amendment to the government regulation (Gov. Reg.)," said Airlangga. (dik)