Understanding Taxpayer Objective Requirements for Business Owners

Understanding Taxpayer Objective Requirements for Business Owners

PPN - 20 Oct, 2023 12:10 WIB

Taxes are a very important source of state income. The objective requirements of taxpayers and the subjective requirements of taxpayers play a very important role in running the tax system in Indonesia.

Unfortunately, both subjective tax requirements and objective tax requirements in taxation in Indonesia are still little known by the wider community, especially by taxpayers. In fact, these two types of taxes are obligations that must be paid. Therefore, in this article we will discuss the requirements for taxpayer objectives for business owners. Come on, look at the following explanation!

Taxpayer Objective Requirements for Business Owners

Taxpayer objective requirements are requirements that must be fulfilled by tax subjects who receive or earn income or are required to withhold/collect tax as in the provisions of the 1984 Income Tax Law and its amendments.

Every Taxpayer who has the status of an entrepreneur who is subject to tax based on the 1984 Income Tax Law and its amendments, must report his business in order to be recognized as a Taxable Entrepreneur (PKP) to the tax authority in the area that includes his residence or place of business.

To apply for PKP status, both business owners who are personal and business taxpayers must complete the application requirements by filling out the PKP application form, and attaching:

  • Pass business owner photo
  • Photocopy of the business owner's KTP (Resident Identification Card).
  • Photocopy of the business owner's NPWP (Taxpayer Identification Number).
  • SKT (Registered Certificate) and Corporate NPWP (if the business is in the form of an entity, not an individual).
  • NIB (Business Identification Number) as a replacement for TDP and SIUP/SITU.
  • Deed of Establishment / Deed of latest amendment.
  • A power of attorney is required if the process is authorized

Objective requirements are requirements for tax subjects who receive or earn income or are required to make deductions/collections in accordance with the provisions of the 1984 Income Tax Law and its amendments. Taxpayer objective requirements include administrative requirements, such as having complete documents and meeting certain criteria. Apart from that, the location of residence or business is also a factor that needs to be considered in determining tax obligations. Business growth can also be a determining factor in the taxpayer's goal requirements.

That is an explanation of the requirements for taxpayer objectives for business owners. If you experience tax problems and need help from a tax consultant, you can contact us via the official Ideatax website for online tax consultations.

With Ideatax, you can optimize and manage business tax payments more efficiently and economically.

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