The Indonesian government is implementing significant changes to the Tax Identification Number (NPWP) system, as outlined in Minister of Finance Regulation Number 136/PMK.03/2023 (MoFR-136/2023). Effective July 1, 2024, taxpayers are required to adopt a new 16-digit NPWP format, integrating the National Identity Number (NIK) for individual taxpayers.
Key Dates and Implementation
- Until June 30, 2024: Taxpayers should continue using their existing 15-digit NPWP for all tax-related and administrative services.
- From July 1, 2024: The new 16-digit NPWP becomes mandatory for all tax and related administrative services.
It’s essential to update your NPWP to the new format before the July 1, 2024 deadline to ensure uninterrupted access to tax services.
Changes to NPWP Format
- Individual Taxpayers (Indonesian Citizens): Your NPWP will be synchronized with your NIK, resulting in a 16-digit identifier.
- Individual Taxpayers (Non-Indonesian Citizens) and Corporate Taxpayers: The existing 15-digit NPWP will be updated to a 16-digit format by adding a leading zero. For example, an NPWP of “92.929.292.9-292.000” will become “092.929.292.9-292.000”.
Steps to Update Your NPWP
Taxpayers can update their NPWP through the Directorate General of Taxes (DGT) Online portal:
- Access the DGT Online Portal
- Log In: Use your existing NPWP and password.
- Update Profile: Navigate to the “Profil” section and enter your new 16-digit NPWP. If you are individual tax payer, you just need to add your ID card number (KTP). If you are a foreigner or corporate tax payer then you just need to add a leading 0 to your existing NPWP number.
- Validate Information: Click the “Validasi” button to ensure your data is correct.
For those without Tax Registration Number (NPWP), they can register one by visiting the new Tax Portal of Indonesia called CoreTax.
Importance of Updating Your NPWP
Failing to update your NPWP to the new 16-digit format by July 1, 2024, may result in difficulties accessing tax administrative services and other services that require NPWP verification. To avoid potential disruptions, it’s advisable to complete the update promptly.
MAM Corporate Solutions offers comprehensive assistance with monthly and annual tax compliance services, ensuring a smooth transition to the new NPWP format. Learn more about our services here.
MAM Corporate Solutions for Tax Compliance
Our team of experienced tax experts is here to provide comprehensive support for all your tax compliance needs. Whether you’re managing individual or corporate taxes, we ensure that every aspect of your tax obligations is handled efficiently and in full compliance with Indonesian regulations.
For further assistance on updating your NPWP or other tax compliance matters, MAM Corporate Solutions offers complete individual and corporate tax compliance services in Indonesia. Contact us or Schedule an Appointment with our tax experts.
