Indonesia

The government issued regulation regarding new individual withholding tax rate on employment, service and activity income received by individuals, which is effective starting 1 January 2024 and aims to simplify the monthly withholding tax calculation in relation to the above types of income. 

The monthly calculation for months of January to November is to be performed using the new Effective Tax Rate ("ETR") while the annual calculation method remains the same. The ETR is differentiated based on certain conditions such as type of income recipient, marital status, etc. 

Specifically for employee, the ETR is applied on the gross income received by the individual in a particular month without applying any annualization or deduction on the gross income.