Attention Taxpayers: Have You Activated Your NIK as a New NPWP?
After much discussion, your Population Identity Number (NIK) will soon become your Taxpayer Identification Number (NPWP), as decided by the Directorate General of Taxes (DJP) and the Ministry of Finance (KEMENKEU), in conjunction with Tax Day. Starting from July 14, 2022, the new policy includes several important points that taxpayers must pay attention to such as the new NPWP format and activation provisions.
The New Format
Referring to the Regulation of the Minister of Finance Number 112/PMK.03/2022, there are three different formats for the new NPWP. Here's an explanation from MRI:
- The regulation applies to Individual Taxpayers with a NIK and resident status (Indonesians and foreigners residing in Indonesia).
- The regulation applies to Individual Taxpayers but not residents, corporate taxpayers, and government agency taxpayers who use the 16 digit NPWP format.
- Branch taxpayers using a Place of Business Identity Number may still use their 15 digit NPWP format, but only until December 31, 2023
Terms and Conditions for Activation
The Directorate General of Taxes (DGT) through the Director of Extension, Services, and Public Relations, Neilmaldrin Noor announced, that there is a difference between those who already have an NPWP and those who do not, as follows:
- Individual taxpayers who already have an NPWP do not need to apply for activation as it will happen automatically when the previous data integration or synchronization has been completed.
- Individual taxpayers who do not have an NPWP are required to apply for NIK activation as an NPWP (if their income is above PTKP, or Non-taxable income).
The overall technical provisions are still being drafted and discussed by the DGT internally and will be published as soon as possible. In addition, the process of transitioning NIKs to be used as NPWPs is still in the integration or synchronization stage (until December 2023).
If you have any questions regarding the NIK/NPWP transition, or taxes in general, please contact Moores Rowland Indonesia for a consultation: firstname.lastname@example.org or email@example.com.
**By: Stefani W. Anggraeni — Marketing Communications & Social Media Specialist