Provisions Changed, Deadline for Taxpayer ID Number Matching Extended to 30 June 2024

Minister of Finance Sri Mulyani has officially extended the deadline for the format change of the Taxpayer Identification Number (NPWP) from 1 January 2024 to 30 June 2024. 

The extension is contained in Minister of Finance Regulation (PMK) Number 136 of 2023 which amends PMK Number 112/PMK.03/2022 concerning Taxpayer Identification Numbers for Individual Taxpayers, Corporate Taxpayers, and Government Agency Taxpayers. 

The new Tax ID format for individual taxpayers who are residents of Indonesia is changed to the Population Identity Number (NIK).  

While for non-resident Indonesian individual taxpayers, corporate taxpayers, and government agency taxpayers will be given a Tax ID number consisting of 16 digits. Then for branch taxpayers, it is changed to the Identity Number of Place of Business Activities (NITKU). 

With this extension, taxpayers can still use Tax ID with the old format on a limited basis, maximum until 30 June 2024. However, the Directorate General of Taxes (DGT) expects that taxpayers will start processing the NIK matching as the new Tax ID number before the deadline ends. 

Matching Procedure 

For resident individual taxpayers, the change of Tax ID format to NIK is done through a matching or activation process. The activation process can be carried out based on the taxpayer's request or ex officio by the DGT. 

The activation process must go through a matching mechanism between Tax ID data and population data in the Ministry of Home Affairs conducted by the DGT and the Civil Registration Section. 

Read: Electronic Matching of Tax ID Number and SIN is Now Possible.

The result of the matching can be in the form of a conclusion, firstly the data is determined to be valid or not valid. If the data is valid, it means that the matching process is successful. Meanwhile, if it is not valid, it means that the NIK and Tax ID data do not match and will then be followed up with clarification by the DGT to the taxpayer. 

The data to be clarified includes: 

1. Electronic postal address and mobile phone number data
2. Data on taxpayer's residential address based on actual circumstances
3.  Business field classification data 
4. Family unit data 

The Activation of Agency and Branch Tax ID Number

Meanwhile, the provision of the 16-digit Tax ID format to non-resident individual taxpayers, corporate taxpayers, and government agencies will also be carried out based on application or in office. For branch taxpayers, NITKU will be given directly, through several services such as: 

• DGT website 
• Taxpayer electronic postal address 
• DGT contact center, or 
• Other channels determined by DGT 

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

Consequences of Delay 

If by 30 June 2024, the new Tax ID format has not been activated, taxpayers will not be able to use tax administration services at certain institutions that require a Tax ID. Some of these services include: 

1. government fund disbursement services 
2. export and import services  
3. banking services and other financial sectors  
4. business entity establishment and business licensing services 
5. government administration services other than those provided by the Directorate General of Taxes; and  
6. other services that require the use of a Tax ID number

However, DGT may extend the activation and matching deadline, if the parties providing services are constrained in preparing the administrative system, related to the use of the new Tax ID format. (ASP/KEN)