Indonesia Tax: What is NPWP Number?

Janhavi Wagh -

Nomor Pendaftaran Wajib Pajak (NPWP)

NPWP is a 15 digit Identification Tax Number where the organisation was  able to pay the taxes of their employees under one NPWP number for those who are eligible to pay taxes.

The tax office in Indonesia requires all individuals residing in Indonesia to have their own NPWP tax number.Also this regulation includes expats.As per the tax office all expats living in Indonesia also need to register with the tax authorities and get their own separate NPWP tax number and pay monthly income taxes, file annual taxes, and pay taxes on the income earned outside Indonesia.

Who is required to register for NPWP tax number and file income tax returns?

  • Employed individuals who earns in excess of the non-taxable income,
  • Employed individuals who earns income outside of their gross salary,
  • Individual taxpayers who receive income from self-employment, business activities.
  • Individual taxpayers who receive income from capital
  • Expats who stay or present in Indonesia for more than 183 days within a single period of 12 months or who are already present in Indonesia and have the intention to live in Indonesia.
  • you may not be obligated to pay Indonesian income tax if you have stayed less than 183 days.
  • For Dependent spouses they are included in the husband's tax number and are not provided with different tax numbers.

Where to register?

Tax payers must register at the Tax Service Office in the city of your residence. Expats who reside in Jakarta are required to register with the Tax Office for Foreign Bodies and Expatriates (KPP BADORA).

Registration of monthly tax payment and annual return can be prepared and submitted by an appointed representative, specialized in tax matters.

Following are the documents required for registration:

  • Completely filled registration form
  • Xerox of all the pages of passport
  • work permit photocopy
  • domicile certificate for you and your employer
  • employer's NPWP photograph
  • Authorization letter, authorizing your representative to register and handle your tax matters.
  • However the registration form only asks for a copy of the passport ID page and does not request the other items mentioned above, the bureaucrats at the Tax Office ask for them as a matter of course.

After registration, taxes are due and payable during the  beginning not later than the 15th day of the following month and reports to be submitted to the tax office by not later than the 20th day of the same month.

Failure to Register

According to the tac office, failure to register to NPWP will lead to imprisonment for a maximum of six years and a maximum fine amount of four times the total of tax due.