Indonesia increases number of administrative tax services accessed through ID numbers

Charles Setia Oetomo and Erviyanti Adam of GNV Consulting report that 37 types of administrative tax services can now be accessed using various ID numbers, and Indonesia has also updated several tax treaties

In line with Indonesia’s synchronisation of tax identification numbers (NPWPs) and individual single identity numbers (NIKs), the Directorate General of Taxes has issued several announcements that extend the list of tax administration services that can utilise 16-digit NPWPs, NIKs, and identity numbers for place of business activity (NITKUs), or a 15-digit tax ID. However, the 15-digit tax ID can only be used up to December 2024.

According to these announcements (PENG-18 on July 12 2024, PENG-23 on July 19 2024, and PENG-24 on August 2 2024), users can now access 37 types of administrative tax services using those references (a 16-digit NPWP, NIK, NITKU, or a 15-digit NPWP) through its portal. These services include e-registration, e-Bupot, e-filing, e-objection, and e-Faktur.

Updates on tax treaties between Indonesia and several countries

The Directorate General of Taxes has released circular letters to announce updates to certain articles in tax treaties between Indonesia and the following jurisdictions: Mexico, Bulgaria, Romania, South Africa, and Hong Kong.

The salient points of the updates are, among others:

A reduced tax rate for dividends (12.5% for Romania and 10% for South Africa) can now only be granted if the 25% ownership requirement is met for at least 365 days immediately preceding the dividend payment date;
For the tax treaties with Mexico, Bulgaria, and South Africa, the other country can now only tax profits from the transfer of shares or similar rights, such as partnership interests or trust assets, if immovable property in that other country accounts for more than 50% of their value, directly or indirectly, within 365 days immediately prior to the transfer; and
For the tax treaties with Bulgaria, Romania, and South Africa, requests for a mutual agreement procedure must now be submitted within three years from the date of the first notification regarding the action resulting in the imposition of tax that is not in accordance with the provisions of a tax treaty with Indonesia.

Please contact any GNV Consulting member for further details on the above changes relating to ID numbers, for a list of the tax administrative services along with their internet portals/links, or to learn more about the aforementioned treaties and their relevance to your case. The firm will be happy to assist you.