DGT Regulates the Issuance of Tax ID Number for Credit Aid Recipients Affected by Covid-19

The Directorate General of Taxes (DGT) can now issue a Taxpayer Identification Number (NPWP) in an ex officio, to debtors who get facilities in a form of interest/margin subsidy for credit or financing.

This is stated in the Regulation of the Director General of Taxes (Perdirjen) number PER-19 / PJ / 2020, which is a derivative of the Minister of Finance Regulation (PMK) number 138 / PMK.05 / 2020

Interest or margin subsidies are facilities provided by the government for bank debtors, financing companies, and Government Credit Channeling institutions affected by the Covid-19 pandemic.

This assistance is given to Micro, Small and Medium Enterprises (MSMEs), Cooperatives, and other debtors with a maximum financing ceiling of IDR 10 billion.

One of the conditions for obtaining this facility, the debtor must have a Tax ID Number (TIN). However, with the regulation that took effect on 6 November, beneficiaries who do not have a Tax ID number can automatically receive facilities without submitting an application to the tax authorities.

Read: Government Releases Mortgage Interest Subsidy, Tax ID Number is Required

The Director General of Taxes will issue a Tax ID number by position based on the results of administrative research on the debtor data of subsidy recipients. This data is obtained from the Financial Services Authority (OJK) and other data owned by the tax authorities.

Then, DGT will submit the NPWP to the debtor and the Director General of Treasury, to support the administration of subsidizing interest or credit margin subsidies.

EFIN Activation

With the Tax ID Number card that has been received, debtors can also apply for Electronic Filing Identification Number (EFIN) activation.

So that taxpayers can conduct electronic transactions with tax authorities such as submitting annual tax returns (SPT) and creating tax payment billing codes.  In addition, debtors can also print the Tax ID Number cards that have been made.

Read: Here is The Procedure for Reporting Government-Borne Tax Incentive

For individual taxpayers, EFIN application and NPWP card printing can be done in all
Tax Offices (KPP) or Tax Services, Dissemination and Consultation Offices (KP2KP).

However, for debtors whose business activities are different from their residence or domicile, they must register to be given a Branch Tax ID Number by the KPP or KP2KP, according to the place of business activity.

For the Tax ID Number that has been issued in an ex officio, the debtor can also submit data changes, transfer of registered taxpayers, reactivation of Non-Effective Taxpayers to the elimination of Tax ID Number.

Data Confirmation

For credit channeling agencies may ensure the debtor's TIN data to tax authorities through various designated channels or through tax application service providers. Confirmation can be done along with the financial account identification process.

The regulation states that the confirmation mechanism is exactly the same as when the financial account identification procedure is related to the provisions on access to financial information for tax purposes.

Thus, the provisions of the TIN confirmation by credit chanelling agencies are not limited to supporting the National Economic Recovery (PEN) program, through the assistance of interest or credit margin subsidies.