Tuesday, January 1, 2008

Tax Identification Number (Nomor Pokok Wajib Pajak-NPWP)

1. What is a Tax Identification Number?


The Tax Identification Number (NPWP) is a number issued to taxpayers by the tax office to identify taxpayers and to assist them in fulfilling their tax obligations. (Article 1 - paragraph (1) Law No. 16 Year 2000).


2. How to get an NPWP ?


Taxpayer shall be obligated to register at the tax office in the district in which the taxpayer reside (Article 2-paragraph (1) Law No. 16 Year 2000) by submitting the following documents:
  1. Registration and change of data form

  2. Copy 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 attorney (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 Letter 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
follows:
  • A taxpayer who has several places of business activities in one operational area of the
    tax office must register each place of business in each related tax office.

  • A taxpayer who has several places of business activities located in the districts
    of several tax offices must register each place of business in each related tax office.
3. What if taxpayer does not want to register?
  • The Director General of Taxation has the authority to issue an NPWP officially. (Article 2-paragraph (4) Law No. 16 Year 2000)

  • If a taxpayer fails to register intentionally resulting in loses to the state revenue, he/she shall be sentenced to imprisonment for period not exceeding 6 years and shall 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)
4. What if there is a change in taxpayer’s data?


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

5. What if the taxpayer is leaving Indonesia permanently or has applied for an Exit Permit Only to the Immigration Office?


A taxpayer should state in writing that an Exit Permit Only (EPO) will be forwarded to the tax office where he is registered, so that the tax office will not issue a tax collection letter due to non filling or non payment of the monthly Article 25 income tax.

The following are to be attached when submitting 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. Cancellation of business permit letter (for a tax payer who is conducting business or is an independent professional)

  4. Power of attorney (if his/her deregistration process is handled by another party)

  5. Original copy of taxpayer identification number card
Before forwarding the EPO, the taxpayer should fulfill other tax obligation such as:
  1. Pay any tax due which has not been paid.

  2. File an annual individual tax return for the year of departure, by providing a close approximation of his/her global income.

  3. File applications for deregistration of NPWP.

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