Indonesian tax administration system begins use of taxpayer identification numbers

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Indonesian tax administration system begins use of taxpayer identification numbers

Sponsored by

sponsored-firms-gnv.png
GNV.jpg

Endy Arya Yoga and Welly Armantha Napitupulu of GNV Consulting summarise recent updates in Indonesia’s tax system, including new debt-related guidelines in the customs and excise sectors and import policy changes

On February 13 2024, the Indonesian Directorate General of Taxes (DJP) announced the use of taxpayer identification numbers (NPWPs) in the tax administration system. The announcement was conveyed through PENG-6/PJ.09/2024 as the implementation of Minister of Finance Regulation No. 136/2023, which regulates the matching of national single identity numbers (NIKs) to NPWPs.

Starting January 2024:

  • An NPWP with a 15-digit format or an NIK is for resident individual taxpayers; or

  • An NPWP with a 15-digit format is for non-resident individual taxpayers, corporate taxpayers, and government institution taxpayers.

The NPWP with a 15-digit format is to be used for various purposes, such as:

  • Creating income tax withholding slips through e-Bupot 21/26, unification e-Bupot, and government agency unification e-Bupot applications;

  • Creating tax invoices through an e-Faktur application;

  • Creating billing codes and depositing/paying taxes;

  • Tax return reporting; and

  • Automatic reporting of financial information for 2023 for taxpayers of reporting financial institutions (domestic exchange of information).

Through PENG-6/PJ.09/2024, the DJP reaffirms that if the recipient's identity used for income is confirmed with an activated NIK as the NPWP, then the higher rate (due to not having a NPWP) will not be applied.

Debt postponement or instalments in the customs and excise sectors

The Directorate General of Customs and Excise (DJBC) has issued implementation guidelines for debt postponement or instalments in the customs and excise sectors through DJBC Regulation No. PER-03/BC/2024. The regulation has been issued to implement Minister of Finance Regulation No. 154/PMK.04/2023.

The matters explained in the regulation can be summarised as follows:

  • The DJBC grants approval for the postponement, or repayment by instalment, of customs debt or the repayment by instalment of excise debt arising from stipulation letters, collection letters, objection decisions, or tax court verdicts, including judicial review verdicts.

  • The postponement or instalment application cannot be granted if the debt is subject to administrative or legal action; i.e., customs objection, customs appeal, correction, or application for reduction or removal.

  • The DJBC shall grant approval or rejection within 10 working days from the date that the application is completely received. If the deadline is not met, the application shall be deemed as approved. The debtor who has obtained the approval should submit a guarantee, such as a bank guarantee or a customs bond.

  • The postponement or repayment by instalment shall be granted for a maximum period of 12 months.

PER-03/BC/2024 entered into effect on February 26 2024.

Update on trade regulations regarding import policies and regulations

The Minister of Trade has enacted Regulation No. 3 of 2024, which amends Minister of Trade Regulation No. 36 of 2023 concerning Import Policies and Regulations.

The major changes of this trade regulation are as follows:

  • Commodities changes –

Commodities

Addition

Revocation

Amendment

Plastic

 

11 harmonised system (HS) codes

 

Fishery products

 

One HS code

 

Hazardous material

One HS code

Two HS codes

Two HS codes

 

  • Hand-carry goods – limits on the entry of non-commercial goods that comprise the personal belongings of passengers, transportation crews, or border crossers (collectively referred to as ‘international travellers’) who are travelling from overseas have now been set that highlight several types of hand-carry goods that are subject to limitations, such as textile products, cosmetics, electronic goods, toys, bags, and alcoholic beverages.

Minister of Trade Regulation No. 3 of 2024 entered into effect on March 10 2024.

Tax Court recess period during Eid holiday 1445 H

On February 6 2024, the Tax Court issued Circular Letter No. 1/PP/2024 regarding the Recess Period during Eid Holiday 1445 H.

The circular announces that the Tax Court will be in recess from April 5 2024 until April 19 2024, and Tax Court hearing sessions will resume on April 22 2024.

more across site & shared bottom lb ros

More from across our site

The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
The tax agency has increased compliance yield from wealthy individuals but cannot identify how much tax is paid by UK billionaires, the committee also claimed
Saffery cautioned that documentation requirements in new government proposals must be limited if medium-sized companies are not exempted from TP
The global minimum tax deal is not viable without US participation, Friedrich Merz has argued
Section 899 of the ‘one big beautiful’ bill would have spelled disaster for many international investors into the US, but following its shelving, attention turns to the fate of the OECD’s pillars
DLA Piper’s co-head of tax for the US and Latin America tells ITR about her fervent belief in equal access to the law, loving yoga, and paternal inspirations
Tax expert Craig Hillier agrees with the comparison of pillar two to using a sledgehammer to crack a nut
The amount is reported to be up 57% from the £5.6bn that the UK tax agency believes was underpaid in the previous year
Gift this article