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Thursday, July 3, 2008

TAX IDENTIFICATION NUMBER or NPWP - REGISTRATION

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. 28 Year 2007).

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. 28 Year 2007) by submitting the following documents:

a. Registration and change of data form

b. Copy of passport

c. Copy of limited stay permit card (KITAS)

d. Copy of work permit (for taxpayer who is an employee)

e. Copy of tax identification number of the employer (for taxpayer who is an employee)

f. Power of attorney (if his/her registration process is done by another party)

g. 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-14/PJ.41/2002 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. 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.

b. 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.

How to registration a NPWP via internet or online registration? You can see this journal.

3. What if taxpayer does not want to register?

a. The Director General of Taxation has the authority to issue an NPWP officially. (Article 2-paragraph (4) Law No. 16 Year 2000)

b. 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. 28 Year 2007)

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 Comments

Anonymous

Hi:
Can anyone advise if a Foreign Resident living in indonesia on a Retirement kita is required to have a NPWP or pay Taxes since it is illegal to work if using a Retirement visa
Thanks
Kevin

Anto February 2, 2009 at 8:10 AM

Dear Mr. Kevin
In Article 2 par (1) Tax Law No. 28 Year 2007, that "Any taxpayer fulfilling subjective and objective requirements in accordance with provisions of taxation legislation shall register with the office of the Directorate General of Taxation"
Objective requirements are requirements for tax subjects receiving or earning income or obliged to withhold/collect in accordance with the provisions of the 1984 Income Tax Law and its amendments.
Subjective requirements are an individual who resides in Indonesia or is present in Indonesia for more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period, or an individual who in particular taxable year is present and INTENDS TO RESIDE in Indonesia.
So, if a Foreign Resident is Intends to reside in Indonesia for more than 183 days within any 12 month period (althought its illegal) and work/receive an income from Indonesia; he/she required to have a NPWP.

Anonymous

Dear Anto:
Thanks for the info, but I am here legally on a Retirement Visa issued by he Indonesian Government.( Limited Stay Permit) under Ceategiry Lansia. I do not work and I renew my permit annualy until age 60 when I can apply for Permanent Residence.
Thanks
Kevin

Anto February 6, 2009 at 11:54 AM

If you don't have income (because you get a Retirement Visa and under category as "Lansia") from Indonesia, so, you are not category that fulfilling objective requirements.
You didn't have the obligation to register a NPWP.

Anonymous

Dear Anto:
Thank You so much for Your complete and helpfull reply. I am in the category You describe Lansia but now wonder am I liable to pay Fiscal tax on Dparture.
Warm Regards
Kevin

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