Court Introduces Validated ID Number as Tax Identification Number

Acting Secretary-General Heru Setiawan delivering his remarks at the introduction of validated ID number as tax identification number, Thursday (1/19/2022) at the hall of the Court’s main building. Photo by MKRI/Ilham W. M.

Thursday, January 19, 2023 | 12:14 WIB

JAKARTA (MKRI) — To improve administrative services with a single identity profile in the form of a resident identification number (NIK) as a tax identification number (NPWP), the Ministry of Finance’s Directorate-General of Taxes (DGT) visited the Constitutional Court (MK) on Thursday, January 19, 2023 to educate the Court’s staff members on the validation of NIK as NPWP for individual taxpayers and the update of ASN’s (state civil apparatus’) tax profile data. The event, taking place both on site at the hall of the Court’s main building and online, were mandatory for all staff members of the Registrar’s Office and the Secretariat-General of the Constitutional Court.

Acting Secretary-General Heru Setiawan said in his remarks that everyone, including the Court’s staff, must validate NIK as NPWP for swift data transfers.

“Everyone in the Constitutional Court who has tax obligations must internalize this and structural officials [should] also provide guarantee so that everyone can carry out this tax obligation,” he said alongside Acting Head of the Planning and Finance Bureau Tatang Garjito from the Court’s hall.

Helping Taxpayers

Head of the Supervision Division IV Nur Hambali, supervisory tax instructor assistant Ninik Andriani, and account representative of Supervision Division IV Fadil Ayatudin from the Gambir small tax office (KPP Pratama) introduced the validation of NIK as NPWP. Ninik said that to introduce this validation mechanism, the DGT wished to create a database with NIK as a single identification so that Tax Information System Update (PSIAP) or the core tax system could provide benefits and convenience for taxpayers. “The point is that the validation of NIK to become NPWP in the future can be carried out independently by all taxpayers or Indonesian citizens,” Ninik said before simulating the validation.

The integration of NIK and NPWP is stipulated in Article 2 of Law No. 7 of 2021 on the Harmonization of Tax Regulations and is technically regulated in Regulation of the Minister of Finance (PMK) No. 112/PMK.03/2022 on Taxpayer Identification Number (NPWP) for individual taxpayers, corporate taxpayers, and government agency taxpayers. Based on said PMK, there are three new NPWP formats for taxpayers. First, individual taxpayers who are residents will use the NIK. Second, non-resident individual taxpayers, corporate taxpayers, and government agency taxpayers must use the 16-digit NPWP format. Third, branch taxpayers will be given a Place of Business Identity Number (NITKU).

Meanwhile, starting January 1, 2024, all tax administration services and other administrative services that require an NPWP will already use the NIK or new-format NPWP. Optimizing the integration of NIK and NPWP serves to mitigate tax avoidance practices, in hopes for optimizing tax revenues. This goal is emphasized in Article 68 of the Government Regulation No. 50 of 2022, which stipulates that when NIK is integrated into NPWP, the DGT shall be aware of every financial transaction made by the citizens.

Writer        : Sri Pujianti
Editor        : Lulu Anjarsari P.
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 1/31/2023 14:22 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

Thursday, January 19, 2023 | 12:14 WIB 90