The Government through the Ministry of Finance of the Republic of Indonesia has just launched a massive adjustment policy about personal exemption in the Regulation of the Minister of Finance No. 101/PMK.010/2016 on June 22, 2016. The provisions concerning the personal exemption is governed by Article 7 Law Act No. 7 of 1983 about Income Tax as amended by Act No. 36 of 2008 that allows the government to adjust personal exemption through the Minister of Finance after consultation with the House of Representatives. Since the implementation of Regulation related to the adjustment of this personal exemption, the amount of the new tax personal exemption became effective for the 2016 tax year or by January 1, 2016. This study describes the impact of the increase in personal exemption to the Income Taxes 21 Notice Period December 2016 on PT.X. Research was conducted using data from 156 taxpayer respondents who are employees of the PT.X. The processed data are about gross income and income tax Article 21 withheld by PT.X in the year 2015. The data then will be simulated in the calculation of income tax Article 21 of the year 2016. Gross income in 2015 will be adjusted to follow the average inflation rate from January until August 2016. With the assumption of ceteris paribus, the gross income shall be reduced by the cost of getting to collect and maintain the income. In the simulation calculation of Income Tax Article 21 year 2016, personal exemption minimum is Rp. 54,000,000, – according to the Ministry of Finance Regulation No. 101/PMK.010/2016. The tax rates are also the same as in 2015, according to the ceteris paribus assumption.
Keywords: personal exemption, notice period, income tax article 21)