What is PPH 21 in Indonesia?
PPH 21 is an abbreviation for Peraturan Pemerintah (Government Regulation) No. 21. It is a regulation that was introduced in 2006 and sets out the rules for how value-added tax (VAT) should be administered in Indonesia.
Under PPH 21, the VAT rate in Indonesia is 10%. This is a relatively low rate compared to other countries in the region, such as Thailand (7%) and Malaysia (6%).
The main purpose of PPH 21 is to …