Update on National ID (NIK) & Corporate tax ID numbers for taxation.
As introduced under the Harmonisation of Tax Regulations Law (UU HPP), the use of ID number (NIK) as tax ID has been further regulated through the issuance of Minister of Finance Regulation No. 112/PMK.03/2022 (MoF-112) which came into force on 8 July 2022.
Under MoF-112, starting 14 July 2022, individual taxpayers who are local citizens shall use their NIK as their tax ID number. Whilst non-citizen individual taxpayers, corporate taxpayers and government agency taxpayers must use tax ID numbers with a 16-digit format, by adding the number “0” (zero) as a prefix to their usual tax ID number.
This new tax ID number in a 16-digit format shall also be used for other administrative purposes which are organised by other government agencies other than the Director General of Tax (DGT) which requires a tax ID number.
Local citizen individual taxpayer who has tax ID in the 15-digit format before the enactment of MoF-112 shall use their NIK as their tax ID number. In relation to the use of this NIK as a tax ID number, the taxpayer’s identifying information will be cross-checked and validated with the information in the Ministry of Home Affairs database (Kementrian Dalam Negeri) through the Directorate General of Population and Civil Registration (Dukcapil).
If there are discrepancies between the taxpayer’s identity based on the DGT database with the information in Dukcapil, the DGT will send a clarification request to the respective taxpayer and the taxpayer will be required to update their information to the DGT. The MoF-112 further explains that there are several channels which can be used to update the taxpayer’s information, such as the DJP Online (https://djponline.pajak.go.id) platform, DGT contact centre, taxpayer’s registered tax office, and/or other channel determined by the DGT. However, MoF-112 does not provide clarity on local citizens who do not have a tax ID prior to the enactment of this regulation. Several points that will need more clarity from DGT include:
- Will local citizens who do not yet have a tax ID be automatically considered registered taxpayers with their NIK as the tax ID number?
- What will the treatment be for minors/children who already have a NIK issued?
Local citizens and individual taxpayers whose information status is invalid and have not yet updated their information can only use their tax ID number in a 15-digit format until 31 December 2023. After that, the taxpayer must update their information and obtain valid status in order to use administration service which requires a tax ID number.
In relation to the use of the 16-digit format tax ID number by non-citizen individual taxpayers, corporate taxpayers and government agency taxpayers, the DGT can send a clarification request to the taxpayer in the form of:
- Email address and mobile number
- Actual domicile or resident address
- Business classification
- Family member information (only applicable for individual taxpayer)
For branch office taxpayers who have obtained a branch office tax ID before the enactment of MoF-112, DGT will provide an ID of the place of business activities which will serve as branch tax ID until 31 December 2023.
In the event of tax administration service and other agency administration process is unable to use the 16-digit format of tax ID, non-citizen individual taxpayer, corporate taxpayer and government agency taxpayer can still use the tax ID with 15-digit format until 31 December 2023.
Starting 1 January 2024:
- All taxpayers must use the 16-digit format of tax ID for all administrative purposes;
- All taxpayers in which their place of business activities is different with the domicile or resident address, must use the ID of place of business activities as the branch tax ID; and
- Other parties who conduct administrative services which require tax ID number, must use the NIK and 16-digit format of tax ID. Administrative services referred to in this point consist of:
- Government fund disbursement service
- Export and import services
- Banking and other financial services
- Establishment of a business entity and licenses
- Government administrative services aside from services conducted by DGT
- Other Services which require tax ID number
DGT, on behalf of, or the Minister of Finance, reserves the right to extend the above timeline to other parties with the consideration of the readiness of the administrative system of such party.
If you have any further queries on the above, please feel free to contact us.