DGT Reveals Reasons for Extending the Deadline for Tax ID Number Activation

JAKARTA. The government has officially extended the deadline for activating the new format Taxpayer Identification Number (NPWP) for individual taxpayers, corporates, government agencies, and branch taxpayers until 30 June 2024.

This is stated in the Minister of Finance Regulation (PMK) Number 136 of 2023 concerning Amendments to PMK Number 112/PMK.03/2022 on Individual Taxpayer Identification Numbers, Corporate Taxpayers, and Government Agency Taxpayer.

The Director General of Taxes (DGT) argued that the extension is done because it adjusts to the implementation of the new Core Tax Administration System (CTAS) which will be ready in mid-2024.

In addition, DGT also still needs time to test the readiness of all stakeholders or related parties such as Government Agencies, Institutions, Associations and other third parties (ILAP).

Apart from that, it must also ensure the readiness of taxpayers. "This opportunity is given to all stakeholders to prepare the application system, said Director of Counselling Services and Public Relations Dwi Astuti.

For information, since 14 July 2022, taxpayers are required to make changes to the Tax ID format by going through the activation process on the DGT website.

With this format change, indigenous individual taxpayers will be adjusted to the Population Identity Number (NIK) as a substitute for the old Tax ID number.

Meanwhile, non-resident individual taxpayers, corporate taxpayers and government agencies will be given a Tax ID format consisting of 16 digits.

Then corporate taxpayers will use the Identity Number of Place of Business Activities (NITKU). The maximum activation of the Tax ID format must be done on 30 June 2024.

As of 7 December 2023, the number of individual taxpayers who have matched NIK-NPWP is 59.56 million consisting of 55.76 million matched through the system and 3.8 million matched by taxpayer.

The number of Tax IDs that have been successfully matched reaches 82.52% of the total domestic individual taxpayers. To encourage the ease and acceleration of matching, DGT has opened a service in the form of a virtual help desk. (ASP/KEN)