Hello, is there anything we can help?
Jakarta, Ideatax -- Directorate General of Taxes or Direktorat Jenderal Pajak (DJP) has been campaigning for the matching of the Taxpayer Identification Number or Nomor Pokok Wajib Pajak (NPWP) with the Customs Identification Number or Nomor Induk Kependudukan (NIK). The reason is that starting January 1, 2024, all tax system services will use NIK as a means of tax administration. Thus, for individual taxpayers who have not done the matching, it is feared that they will experience problems during reporting and payment.
However, to avoid obstacles in integrating NIK with NPWP, in mid-December 2023, the government issued Minister of Finance Regulation Number 136 of 2023 concerning Amendments to Minister of Finance Regulation Number 112/PMK.03/2022 concerning Individual Taxpayer Identification Numbers, Corporate Taxpayers, and Government Agency Taxpayers. In addition, the postponement of the use of NIK as an NPWP is also motivated because the government wants to harmonize the implementation of NIK as an NPWP with the implementation of the Coretax Administration System (Cortax) in mid-2024 (Irawati, 2023).
Through this provision, the government regulates that taxpayers can still use the fifteen-digit taxpayer identification number in tax administration until June 30, 2024. This provision applies not only to individual taxpayers but also to corporate taxpayers, government agencies, and undivided inheritances. It means that individual taxpayers, corporate taxpayers, government agency taxpayers, and undivided inheritance taxpayers can still use the fifteen-digit tax ID number until June 30, 2024.
NPWP for Individuals
The Director of Services, Counseling, and Public Relations of the DJP, Dwi Astuti, stated that as of December 7, 2023, there were 59.56 million NPWPs that matched with NIK (Irawati, 2023), which is equivalent to 82.52% of the total number of individual taxpayers in Indonesia (Antara, 2023).
With the issuance of PMK 136/2023, the full implementation of the Customs Identification Number in tax administration is postponed until July 2024. After July 1, 2024, Individual Taxpayers will use the Customs Identification Number as a means of tax administration, both for obtaining tax services and for administration with other parties that require a Taxpayer Identification Number. The taxpayer must first perform the matching to utilize tax administration services or other administrations using the matched data of NPWP and NIK.
There are at least six other party services that require a Customs Identification Number as a means of tax administration, including government fund disbursement services, export and import services, banking services and other financial sectors, business entity establishment services and business licensing, other administrative services other than those organized by the Directorate General of Taxes, and other services that require the use of NPWP.
NPWP for Corporations and Government Agencies
As mentioned earlier, for individual taxpayers who are residents, the Customs Identification Number is used as the Taxpayer Identification Number. On the other hand, non-resident taxpayers, corporate taxpayers, and government agency taxpayers use a Taxpayer Identification Number with a sixteen-digit format.
PMK 136/2023 stipulates that the Directorate General of Taxes will provide a NPWP with a sixteen-digit format for corporate taxpayers and government agencies either through taxpayer requests or by position. However, for branch taxpayers who have obtained a branch Tax Identification Number before PMK 136/2023 comes into effect, DJP will provide an identity number for the place of business activity. The identity number of the place of business activity as mentioned will be submitted by DJP either through the DJP website, taxpayer email address, DJP contact center, or other channels.
Like the two sides of a coin, the NIK as NPWP implementation certainly has positive and negative sides. On the positive side, the implementation will realize a single identity number that allows taxpayers to use one identity for all purposes. However, the use of NIK as an NPWP raises security issues. If the taxpayer makes a transaction, the counterparty will inevitably know the taxpayer's identification number. This security issue needs attention and mitigation from the Directorate General of Taxes as an interested agency. Thus, taxpayer trust in the taxation authority is maintained.
References
Antara. (2023, Desember 12). DJP undur target implementasi penuh NIK sebagai NPWP ke Juli 2024. Retrieved from Antara: https://www.antaranews.com/berita/3868437/djp-undur-target-implementasi-penuh-nik-sebagai-npwp-ke-juli-2024#:~:text=Dwi%20menambahkan%20jumlah%20NIK%20yang,WP%20orang%20pribadi%20dalam%20negeri.
Irawati. (2023, Desember 8). Implementasi NIK Jadi NPWP Diundur, Ini Alasannya. Retrieved from InfobankNews: https://infobanknews.com/implementasi-nik-jadi-npwp-diundur-ini-alasannya/#:~:text=%E2%80%9CSebagai%20informasi%2C%20sampai%20dengan%207,Pribadi%20Dalam%20Negeri%2C%E2%80%9D%20ungkapnya.
