Tax payer Identification Number (NPWP)

The Tax Identification Number (NPWP) is a number issued to taxpayers by the tax ofice to identify taxpayers and to assist them in fulfiling their tax obligations. (Article 1 - paragraph (1) Law No. 16 Year 2000). Taxpayer shal be obligated to register at the tax ofice in the district in which the taxpayer reside (Article 2-paragraph (1) Law No. 16 Year 2000) by submiting the folowing documents:

1. Registration and change of data form
2. Copyy of passport
3. Copy of limited stay permit card (KITAS)
4. Copy of work permit (for taxpayer who is an employee)
5. Copy of tax identification number of the employer (for taxpayer who is an employee)
6. Power of atorney (if his/her registration process is done by another party)
   
7. Copy of business permit (for taxpayer who is conducting business or an independent professional)

An individual taxpayer who is an entrepreneur as mentioned in the Circular Leter of Director General of Taxation No.: SE-40/PJ.41/2000 is an individual who has several places of business activities. He/she is obligated to register in his/her place of business activities as folows:

1. A taxpayer who has several places of business activities in one operational area of the tax ofice must register each place of business in each related tax ofice.
2. A taxpayer who has several places of business activities located in the districts of several tax ofices must register each place of business in each related tax ofice.

How if taxpayer does not want to register? The Director General of Taxation has the authority to issue an NPWP oficialy. (Article 2-paragraph (4) Law No. 16 Year 2000)

If a taxpayer fails to register intentionaly resulting in loses to the state revenue, he/she shal be sentenced to imprisonment for period not exceeding 6 years and shal be subject to a fine for an amount not exceeding four times the tax unpaid/underpaid. (Article 39-paragraph (1) Law No. 16 Year 2000)

A taxpayer may inform the tax ofice of any change in his data (such as change of address, change of employer, etc.) by filing the registration and change of data form at the tax ofice where the taxpayer is registered.

What if the taxpayer is leaving Indonesia permanently or has applied for an Exit Permit Only to the Immigration Ofice? A taxpayer should state in writing that an Exit Permit Only (EPO) wil be forwarded to the tax ofice where he is registered, so that the tax ofice wil not issue a tax colection leter due to non filing or non payment of the monthly Article 25 income tax.

The folowing are to be atached when submiting the deregistration form (now known as registration and change of data form):

1. Exit Permit Only (EPO)
2. Statement from the employer stating that a taxpayer’s contract in Indonesia has ended (for a taxpayer who is an employee)
3. Cancelation of business permit leter (for a tax payer who is conducting business or is an independent professional)
4. Power of atorney (if his/her deregistration process is handled by another party)
5. Original copy of taxpayer identification number card