Indonesia Tax Identification Number

When Should I Registering as a Taxpayer?

According to the Article 2 paragraph (1) General Provisions and Tax Procedures Law (Indonesian Tax Law No. 28 Year 2007) that every taxpayer who has met subjective and objective requirements as stipulated by tax laws shall be obliged to register at the office of the Directorate General of Taxes whose jurisdiction covers the residence or domicile of the Taxpayer and be provided with a Taxpayer Identification Number.

What is a Tax Identification Number?

The Tax Identification Number (In Indonesian term is called Nomor Pokok Wajib Pajak or NPWP) is a number issued to Taxpayers by the tax office to identify taxpayers and to assist them in fulfilling their taxation rights and obligations.

What if Taxpayer does not want to register to get the Tax Identification Number?

If the Taxpayer does not want to register, the Director General of Taxes may issue a Taxpayer Identification Number and or confirm a Taxable Person for VAT Purposes ex-officio in case a Taxpayer or a Taxable Person for VAT Purposes does not fulfill the obligations as referred to in article 2 paragraph (1) and (2) Indonesian Tax Law No. 28 Year 2007.
According to the Article 39 Paragraph (1) letter a Indonesian Tax Law No. 28 Year 2007 stipulated that whom soever deliberately fails to register for a Taxpayer Identification Number, or fails to register his business to be confirmed as a Taxable Person for Value Added Tax Purposes, which may cause losses to the revenues of the state, shall be penalized by imprisonment for a minimum of 6 (six) month or a maximum of 6 (six) years and a minimum fine equal to 2 (two) times the amount of unpaid or underpaid tax and a maximum fine equal to 4 (four) times the amount of unpaid or underpaid tax.

How to get an NPWP?

Taxpayer shall be obligated to register at the tax office in the district in which the taxpayer reside by submitting the following documents:
a. For Expatriate:
-Fill the Registration form
-Copy of passport
-Copy of limited stay permit card (KITAS)
-Copy of work permit (for taxpayer who is an employee
-Copy of tax identification number of the employer (for taxpayer who is an employee)
-Power of attorney (if his/her registration process is done by another party)
-Copy of business permit (for taxpayer who is conducting business or an independent professional).

b. For Indonesian Citizen
-Fill the Registration form
-Copy of identity card
-Power of attorney (if his/her registration process is done by another party)
-Certificate of place of business from the competent authority
-Copy of business permit (for taxpayer who is conducting business or an independent professional).

Tax Identification Number (in Indonesian terms: 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. Completed the Registration and change of data form

b. Copy of passport (all the pages in your 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.

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.