Enforcement of the New Format of Taxpayer Identification Number (Nomor Pokok Wajib Pajak – NPWP)
Authors
In the last October 2021, the government enacted Law No. 7 of 2021 regarding Harmonization of Tax Regulations, which regulates and amends various provisions in the field of taxation, one of which is in the general provisions of taxation by stipulating that the National Identity Number (Nomor Induk Kependudukan – NIK) will be the identity number of individual taxpayers (replacing the role NPWP). Further, as an implementation of these regulations, the government (i.e., Minister of Finance – MOF) has promulgated the MOF Regulation No. 112. PMK.03/2022 regarding NPWP For Individual Taxpayer, Corporate Taxpayer, and Government Institutional Taxpayer (“MOF Reg 112/2022”) on 8 July 2022.
In this regard, the enforcement of the NPWP new format is as follow:
14 July 2022 until 31 December 2023
Individual (resident) taxpayer – using the 16-digit number of NIK, with the following term and conditions:
Registered taxpayer : NIK is applicable as NPWP (if the NIK status is valid in the djp website, i.e., djponline.go.id). If the status is not valid yet, the synchronization of the data can be conducted through djp website; email; and tax officer.
Please note that old 15-digit format of NPWP still can be used until 2023.
Non-registered taxpayer : will still be given 15-digit format NPWP (can be used until 31 December 2023). The activation of NIK as NPWP could be conducted through a registration by the taxpayer (via djp website/profile menu) or by the authority.
Corporate taxpayer (and individual non-resident taxpayer) – using the 16-digit of NPWP’s new format, with the detail as follows:
Registered taxpayer : using the 16-digit format of NPWP format, by adding the number “0” (zero) in front of the old 15-digit format of NPWP.
Non-registered taxpayer : will be directly given the 16-digit format of NPWP through a registration by the taxpayer or by the authority.
Government institutional taxpayer
Registered taxpayer : using the ID Number of Business Activities Place which will be given the tax authority.
Non-registered taxpayer : still will be given the old 15-digit format NPWP (which can used until 31 December 2023) and ID Number of Business Activities Place.
Starting from 1 January 2024
Starting 1 January 2024, in which the Coretax (new system of Indonesian Taxation) will be operating, the usage of the new NPWP format (as above, i.e., (i) NIK for individual resident taxpayers; (ii) 16-digit format of NPWP for corporate taxpayer and individual non-resident taxpayer; and (iii) ID Number of Business Activities Place for government institutional taxpayer) will be effectively implemented in its entirety.
For the avoidance of doubt, the 15-digit format of NPWP (for all taxpayer) will become invalid starting from 1 January 2024.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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