Indonesian tax administration system begins use of taxpayer identification numbers
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Indonesian tax administration system begins use of taxpayer identification numbers

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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.

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