T Taxes are a mandatory and strategic instrument of the state in financing national development, with income tax (pph) article 21 being one of the main contributors to state revenue. in line with regulatory changes, the government issued pmk no. 168 of 2023, which regulates the withholding of pph article 21 using the average effective rate (ter) scheme to simplify the calculation process and improve tax administration efficiency. this final project aims to examine the company's payroll system policies, tax compliance practices, and the pph article 21 equalization process at pt. listrik indonesia media in 2024. this thesis employs documentation, interviews, and literature review methods. the results of this thesis indicate that the company\\\'s salary components consist of basic salary and thr, with tax withholding using the net approach, ensuring that pph 21 payments and reporting do not reduce employees' income. pt. listrik indonesia media also conducts equalization, resulting in consistency between the monthly income tax return (spt masa pph article 21), the fiscal profit and loss statement, and the annual corporate tax return (spt tahunan badan), with total salary costs amounting to rp526,500,000 and outstanding income tax article 21 (pph 21) totaling rp3,433,750. in the annual corporate tax return, these tax expenses are fiscally adjusted because they are benefits in kind provided to employees as listed in article 9 paragraph (1) letter h, which are non-deductible expenses that affect fiscal profit.