New Untaxed Income (Personal Deduction)
Based on Regulation of the Minister of Finance Number 162/PMK.011/2012, dated October 22, 2012, the amount of non taxed income (personal exemption) for single taxpayers (not in the marital status) increased from IDR 15,840,000.00 / year to IDR 24 300. 000,00 / year.
The details of the new non taxed income (personal deduction) are as follows:
- IDR 24,300,000.00 for individual taxpayers themselves;
- IDR 2,025,000.00 addition for married taxpayers;
- IDR 24,300,000.00 addition to a wife whose income combined with the income of the husband;
- IDR 2,025,000.00 for each dependent family member related by blood and by marriage in a direct lineage, and an adopted child with a maximum of three dependents
The new non taxed income (personal exemption) shall take effect by January 1, 2013.
Not bad, under the new personal exemption scheme for single taxpayers would save Rp 8,460,000.00/ year that are the income which shall not be taxed. Meanwhile, for taxpayers with dependents 3 children would save IDR 11,280,000.00/ year. It shall be more helpful for employees and retirees, especially those receiving small salary or pension , if the amount of the functional cost and pension costs also increased.
My dear friends, I would appreciate if you give an opinion or comment on this new personal exemption.