What is NPWP? NPWP is an abbreviation for “Nomor Pokok Wajib Pajak,” which translates to Taxpayer Identification Number. The definition of NPWP itself is a number given to taxpayers, used as an identifier and identity of taxpayers in carrying out their rights and obligations in taxation.
Taxpayer Identification Number or NPWP
A number given to taxpayers, used as an identifier and identity of taxpayers in carrying out their rights and obligations in taxation.
NPWP is mandatory for Indonesian citizens, both individuals and businesses. This NPWP serves as an administrative tool for taxation purposes and a reference for paying taxes. It is also a requirement for various public services such as credit applications, passport issuance, and so on.
NPWP is divided into two types:
1.) Personal NPWP
Personal NPWP is owned by every individual or person with income in Indonesia.
2.) Corporate NPWP
Corporate NPWP is owned by every corporation or company with income in Indonesia.
Also read: Indonesia NPWP Online Registration: Step-by-Step Guide
What is the difference between Personal NPWP and Corporate NPWP?
Physically (in the form of a card), there is no difference between Personal NPWP and Corporate NPWP. The only difference lies in additional data stored in the tax office database, for example:
Taxpayer’s name Address Type of business Company owner Deed number Type of business and its branches Owned assets and other information within the company So, what are the uses of NPWP?
A.) Uses of NPWP for Entrepreneurs
For entrepreneurs, NPWP has many uses. Most NPWP is used for bank loan completeness. Another use of NPWP for entrepreneurs is in taxation. As a business owner, there are times when you apply for a tax refund for the tax you paid. Overpayment of taxes commonly occurs for those involved in buying and selling transactions related to VAT.
B.) Uses of NPWP for Companies
Companies are a legal form of business. The uses of NPWP for companies are the same as the uses of NPWP for entrepreneurs. If an entrepreneur is an individual, a company is a legal entity.
What are the requirements for obtaining a Personal NPWP?
Here are the requirements for Personal NPWP if you work as an employee:
Photocopy of personal identification, Identity Card (KTP) for Indonesian citizens. Photocopy of passport, photocopy of Limited Stay Permit Card (KITAS) or Permanent Stay Permit Card (KITAP) for foreigners. If you work as a civil servant (PNS), include a photocopy of the civil servant appointment letter. If you work as a private sector employee, include a photocopy of the employment certificate from your workplace. Complete the registration form (the form is available at the tax office).
Good Citizens Pay Taxes
There are many benefits to having an NPWP. Register yourself to get an NPWP. Besides the easy requirements, the process is very fast, taking approximately one day to complete. In addition, registration is free.
