Get To Know Individual and Company NPWP Registration in Indonesia
After opening a company in Indonesia, one of the things you must know is about NPWP registration.
NPWP is used to pay taxes and as a tax identification. Tax is a form of mandatory contribution to the state from specific individuals and entities.
As a foreigner who is residing in Indonesia and wants to do business in Indonesia, paying taxes is also mandatory. Taxes have a crucial role for a country and its citizens. Taxes are a source of state revenue to finance all state expenses, including state development.
Expatriates and non-citizens of Indonesia are obligated to pay tax only if they have been staying in Indonesia for more than 183 days.
Indonesia Tax: What is NPWP?
NPWP stands for Nomor Pendaftaran Wajib Pajak or Taxpayer Identification Number, a number given to employees as a means of tax administration.
NPWP number is used to identify the employee’s identity when doing their taxation rights and obligations. The definition of Taxpayer Identification Number is taken from Law 28 of 2007, Article 1, Number 6.
Each employee only needs one NPWP Indonesia that has a 15-digit tax identification number. You can get the NPWP application form from the nearest Tax Office or download it from the official website of the Directorate General of Taxes.
Types of NPWP
There are two types of NPWP: individual NPWP and Corporate NPWP. Individual NPWP is given to every individual with income.
Meanwhile, the Corporate NPWP is given to business entities or companies that have income. The two types of NPWP, individual NPWP and corporate NPWP, are divided into several categories.
Individual NPWP
Individual NPWPs for Indonesians can be processed offline or online registration through the Directorate General of Taxes website.
If you are a foreigner who intends to live and run a business in Indonesia, then you must have an NPWP. Expats must have an Indonesian NPWP and pay monthly income taxes, file annual taxes, and pay taxes on income earned outside Indonesia.
To register for an NPWP, expats need a passport and KITAS. You will also need an address in Indonesia, an email address, and a contact phone number.
Company NPWP
The company NPWP is a legal obligation that must be complied with by every company operating in Indonesia.
By having an NPWP, the company has complied with applicable tax laws.
If you are a foreigner who wants to do business in Indonesia and has a company, it is mandatory to have a company NPWP. This is of course different from an individual NPWP.
How to Make an Individual NPWP
Individual NPWP is an NPWP for taxpayers with the condition that they already have income.
Individual NPWP Requirements
Generally, this personal NPWP has several categories with different requirements, as follows:
Requirements for the category of employee who have income from business or freelance work.
- Copy of KTP or identity card for Indonesian citizen
- Copy of passport, KITAP, KITAS (stay permit for foreigners)
- Copy of business license issued by an authorized institution
- Or a certificate of place of business activity or independent work issued at least from the Head of Village or Village Head.
Requirements for expats with married women with separate tax rights and obligations
- Copy of ID card for Indonesian citizen
- Copy of passport, KITAP, KITAS (stay permit for foreigners)
- Copy of husband’s NPWP card
- Copy of family card
- Copy of foreign taxation letter for a foreign husband
- Copy of statement letter to apply for separate NPWP from husband
How To Make Company NPWP
For foreigners who establish a PT PMA, your company must be registered to obtain a NPWP if it is a taxpayer who has fulfilled the requirements of the provisions of tax laws and regulations.
Registration of a Company NPWP is carried out by self-assessment. To obtain an NPWP, the taxpayer must register the company with the Tax Office, where the taxpayer is domiciled.
So, after knowing the requirements and procedures for making a Company NPWP, both online and offline, it is your obligation as the owner or person in charge of the company who is a Taxpayer to register the company to get a Company or Business Entity NPWP.
Company NPWP Requirements
Corporate NPWP is a NPWP for taxpayers who are business entities or companies and have earned income from their profits.
Well, this Company NPWP will also have several categories with different requirements, for example:
Company NPWP requirements for the profit-oriented business entity category
- Copy of business establishment document
- Copy of NPWP tax number of one of the business managers
- Copy of business license issued by an authorized institution, at least from Lurah or Village Head
Requirements for Agency NPWP for non-profit business entity category
- Copy of the identity card of one of the management
- Certificate of domicile from the local Rukun Tetangga (RT) or Rukun Warga (RW) administrator
NPWP Registration with LetsMoveIndonesia
Doing taxes in Indonesia could take a lot of work. Want to simplify the process of registering an Individual and business NPWP? LetsMoveIndonesia has a service specialized in tax matters that take care of NPWP registration quickly and smoothly.
With offices in key strategic locations in both Jakarta and Bali, you can experience a free walk-in consultation. Get your free consultation now!
