Branch office NPWP in Indonesia now refers to the use of the Business Activity Location Identification Number (Nomor Identitas Tempat Kegiatan Usaha / NITKU) as the official branch identity directly linked to the head office NPWP. Since 1 July 2024, the Directorate General of Taxes (DGT) has abolished the requirement for separate branch NPWPs and centralized all tax reporting and payments under the head office NPWP. NITKU functions as a business location identifier for each branch office, using a 22-digit structure integrated into the DGT Coretax system. This scheme must be well understood by multi-branch companies, tax consultants, and businesses with more than one operational location to remain compliant with the latest tax regulations.
Read Also: What Is a Branch Office: Definition, Functions, and Regulations
Transition from Branch NPWP to NITKU
Previously, a branch NPWP functioned both as an identity and as a tool for fulfilling branch-level tax obligations. This system created administrative complexity because each branch had to pay and report taxes separately.
Through PMK 112/PMK.03/2022 and PER-6/PJ/2024, the DGT replaced this system with NITKU. NITKU functions solely as a business location identifier. All tax obligations are now centralized under the head office NPWP. This approach aligns with the Coretax reform, which became fully mandatory starting in 2025.
What Is NITKU and Why It Is Mandatory
NITKU is a 22-digit identifier consisting of the 16-digit head office NPWP and a 6-digit branch sequence number. Every branch office is required to have a NITKU in order to issue tax invoices, withholding slips, and to be officially recorded in the Coretax system.
Without a NITKU, tax documents risk being rejected. This has a direct impact on business operations, especially for companies operating across multiple cities or provinces.
Requirements for Branch Office Registration
To register a branch office in accordance with the latest DGT regulations, you need to prepare the following:
Documents from the Head Office
- 16-digit Corporate NPWP
- Deed of establishment and its amendments
- Valid Ministry of Law and Human Rights (Kemenkumham) approval
Branch Appointment Documents
- Branch appointment letter or decision issued by the head office
- Identification of the branch person in charge
Branch Business Domicile Documents
- Complete address of the business activity location
- Verifiable domicile proof located in an office or commercial zone
Branch Operational Data
- Business Field Classification Code (KLU)
- Active phone number and email address
- Business location coordinates according to the DGT mapping system
Branch Office Registration Procedure via Coretax
Branch office registration is conducted centrally through the DGT Coretax system using the following steps:
- Log in to the Coretax account using the head office NPWP
- Access the NPWP or business activity location management menu
- Select the option to add a new branch office or business location
- Complete the branch data accurately and thoroughly
- Upload all required supporting documents
- Verify the data and submit the application
- The system will automatically issue the NITKU once validation is successful
The branch office address is a crucial element in this process. The DGT only recognizes addresses that are clear, consistent, and provable as an actual place of business activity. Errors related to domicile are a common cause of rejection or delays in NITKU issuance.
Read Also: Opening a Branch Office in Indonesia: A Complete and Structured Guide
Branch Office Domicile and Practical Challenges
We often encounter clients who are business-ready but face obstacles due to branch domicile issues. Leasing a full physical office for a new branch is often inefficient in terms of cost and time.
Under the latest regulations, a lawful and increasingly common solution is a virtual office located in a designated office zone and recognized as a valid business address. As long as domicile requirements are met and the address is used consistently in administrative matters, a virtual office can serve as a valid branch office address.
Compliance Strategy for Multi-Branch Businesses
To remain compliant, we recommend ensuring that each business location has an active NITKU, including it in all tax documents, and centralizing reporting through the head office NPWP. When implemented correctly from the outset, this system actually simplifies tax control and oversight.
Virtual Office as a Modern Branch Office Solution
At this stage, many business owners choose a more flexible approach. A virtual office enables the legal establishment of a branch office without the burden of high operational costs. This model is particularly relevant for consultants, startups, and service-based companies that prioritize efficiency.
Check:Use of Virtual Offices for Branch Offices in Indonesia
Why Many Entrepreneurs Choose vOffice
As a virtual office provider since 2012, we at vOffice understand tax compliance and branch office legality comprehensively. With more than 40 locations across Indonesia, our business addresses are situated in office zones legally recognized for branch office domiciles. This significantly simplifies the NITKU registration process and your tax administration.
If you want to open a branch office quickly, remain compliant, and stay cost-efficient, a vOffice virtual office can be your next strategic move.
Check: vOffice Virtual Office, the Right Choice for Branch Offices in Indonesia
Below are strategic vOffice location options for virtual offices in Indonesia:
- Rent Virtual Office Jakarta
- Rent Virtual Office Tangerang
- Rent Virtual Office Bekasi
- Rent Virtual Office Surabaya
- Rent Virtual Office Bali
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What are you waiting for? Contact us now and get various attractive offers!
FAQ About Branch Office NPWP
Is branch NPWP still valid in 2026?
The old branch NPWP is no longer valid and has been replaced by NITKU. Branch tax identity must use NITKU.
Is every branch required to have a NITKU?
Yes. Every separate place of business activity is required to have a NITKU.
Are branch tax obligations still separate?
No. All branch tax obligations are centralized and reported using the head office NPWP.
Is a virtual office valid for branch office NITKU?
Yes, as long as it is located in an office zone and used as the official business address.
