Implementing the New PPh 21 Framework: Updated Withholding Guidelines Introduced

In an attempt to offer greater convenience in relation to withholding tax calculations for work, services or individual activities, the Minister of Finance (“Minister”) has issued Regulation No. 168 of 2023 on Implementing Guidelines for Income Tax (Pajak Penghasilan – “PPh”) Withholding in Relation to the Works, Services or Activities of Individuals (“Regulation 168/2023”), which has been in force since 1 January 2024.

Upon entering into force, Regulation 168/2023 merged various provisions that originally featured under the following Regulations of the Minister, while simultaneously repealing and replacing said frameworks (collectively referred to as “Previous Regulations”):[1]

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