Data and information being validated and clarified of the tax number This process begins with an on-site visit. Subsequently, the required information must be submitted in documents. The tax inspector will also ask questions of the taxpayer, and additional documents will be attached depending on the answer. Until December 31, 2023, the use of this new 16-digit tax number format will continue to be limited to certain tax departments. After that, the government will open up to all tax services. The government is officially changing and aligning the format of the Tax Identification Number (NPWP) with the Unique Identity Number (NIK) and the Business Place Identity Number (NITKU). This 16-digit tax number directive will be implemented gradually with a transitional period from 14 July 2022. A special 16-digit tax identification number format is used for individual taxpayers whose status is non-resident, as well as for businesses and government agencies. This is done by adding the number 0 before the 15-digit number indicated in the tax identification number of businesses, non-resident individuals and government agencies. This change in the format of the tax identification number is intended for resident individual taxpayers, non-resident individual taxpayers, corporate taxpayers, government taxpayers up to branch taxpayers.

During the activation process, taxpayers, businesses, government agencies and industries can still use the old tax identification number format (15 digits) until December 31, 2023. This transition period also applies if tax authorities or other parties have not been able to support the SIN, 16-digit tax identification number and NITKU. The procedure for obtaining a tax identification number in this new format is the same as for an individual SIN, i.e. incorporated taxpayers, government authorities and non-residents can submit an application to DGT or it is determined to the Agency. DGT then validates and clarifies the data before activating the new tax number. Meanwhile, the use of NITKU as a tax identification number is intended for branch or business taxpayers whose location is different from the owner`s residence. The Directorate General of Taxes, also known as the Jenderal Pajak Directorate (DJP), is a government agency of the Indonesian Ministry of Finance. It is responsible for tax policy and standardization of technical issues in the field of taxation. Finally, the decision of the Tax Court can then be challenged by the taxpayer or the Directorate General of Taxes at the Supreme Court by filing an application for judicial review. The application of one of the parties must be submitted to the Supreme Court no later than three months after the judgment of the Tax Court.

The Supreme Court is then expected to conduct appropriate investigations and reviews before the final verdict is rendered. The final verdict applies. The taxpayer is then required to submit all documents relating to the application within one month from the date of the request. Otherwise, documents not provided will not be taken into account in case of tax objections. Indonesia has different tax systems for individuals, companies and investors. These include personal income tax, corporate tax, withholding tax, value-added tax (VAT), international tax treaties, luxury sales tax, customs and excise duties, international agreements tax, tax on land and buildings and tax benefits. These forms of taxation are mandatory and must be complied with accordingly. Data is considered valid if the taxpayer`s identity matches the demographics. On the other hand, the data is considered invalid if the identity of the taxpayer does not match the demographic data, so further clarification is needed. For a tax return, a form known as Form 1770 must be completed after tax registration. The person must complete the form and return it to the tax office where they had previously registered.

This organization is a combination of several other organizations that are sub-units. These include: The tax office in Indonesia requires all Indonesian residents to have their own NPWP tax number. This regulation also applies to expatriates. According to the tax office, all expats living in Indonesia must also register with the tax authorities and get their own NPWP tax number and pay monthly income taxes, file annual taxes and pay taxes on income earned outside Indonesia.