Entitled to VAT Facility, Foreign Representatives and International Organizations Are Eligible for TIN

The Directorate General of Taxes (DGT) released the provision of a Taxpayer Identification Number (TIN) for foreign country representatives, international organizations and their officials who are not included as Income Tax subjects. 

The provision is contained in Director General of Taxes Regulation Number PER-8/PJ/2024 which was released and came into force on 26 September 2024.

The provision of the TIN is carried out in connection with the tax facility for exemption from Value Added Tax and Sales Tax on Luxury Goods (VAT and STLG)) for foreign country representatives, international organizations, and their representatives regulated in Minister of Finance Regulation Number 59 of 2024.

Criteria for Non-Tax Subjects

The issuance of a TIN to entities that are not subject to Income Tax is not intended to facilitate activities for earning income outside of their official duties or positions within foreign country representatives and international organizations.

In other words, the issuance of a TIN does not create an Income Tax obligation for officials as long as they do not engage in business, activities, or other employment outside the institution where they serve. 

The same applies to international organizations; a TIN does not lead to Income Tax obligations, as long as there is no income other than from the Indonesian government or on loans provided to the Indonesian government.

TIN Solely for Specific Tax Administration Purposes

Thus, the existence of a TIN serves only as a tax identification and does not create an Income Tax obligation. The following tax administration activities are covered under the use of this TIN:

• Application for exemption from VAT or VAT and STLG
• Issuance of tax exemption certificates for VAT or VAT and STLG 
• Refund of VAT or VAT and STLG that has been collected
• Repayment of VAT or VAT and STLG previously granted exemption facilities, and 
• Other tax administration activities, excluding the obligations of withholding, collecting, reporting, and paying. 

In addition, the TIN can also be used by representatives of foreign countries, international organizations, and their representatives, for services organized by certain parties, such as:

• recommendation services in the context of exemption from VAT or VAT and STLG under the provisions of laws and regulations
• customs services in the context of imports, and
• other services that require the use of TIN

EFIN for Data Changes and TIN Deletion

The regulation also specifies that if foreign country representatives, international organizations, and their representatives wish to make data changes or delete their TIN, the Directorate General of Taxes (DGT) can issue an Electronic Filing Identification Number (EFIN).

An EFIN is an identification number issued to taxpayers for conducting electronic transactions with the DGT.

EFIN issuance can be based on application or granted officially. To apply for an EFIN, foreign country representatives, international organizations, and their representatives must fulfill the following requirements:

1. Establishment documents of the foreign representative office issued by the Ministry of Foreign Affairs
2. Residence permit documents for officials of foreign country representatives and international organizations

Reasons for Data Changes and TIN Deletion

Data changes can be made, including those related to changes in the status of foreign country representatives or international organizations as income tax subjects.

Meanwhile, TIN deletion can be done under the following conditions. First, if the foreign representative office or international organization is closed or no longer meets the criteria as a foreign representative office or international organization.

Second, if the foreign representative office or international organization is dissolved, the agreement with the Indonesian government ends, or it ceases activities in Indonesia for other reasons. Third, if the assignment period for foreign country representatives and officials of international organizations has ended. (ASP/KEN)