What is NPWP Indonesia?
NPWP (Nomor Pendaftaran Wajib Pajak) is the Tax Identification Number in Indonesia used by companies and individuals who are tax residents of Indonesia. NPWP Indonesia, which consists of 15 digits, ensures that everyone, including foreigners living in Indonesia, pays their tax dues according to the country’s taxation regulations.
Expats, in particular, are required to have their Indonesian NPWP number and are obliged to pay monthly income taxes, file annual taxes, and pay taxes on income earned outside Indonesia. Foreigners who establish a PT PMA also receive an NPWP number in Indonesia to pay their corporate taxes, even if they’re not tax residents in Indonesia.
Do I need an NPWP number?
Anyone residing in Indonesia, including expats, needs an NPWP tax number. The following individuals are required to register for an NPWP tax number and file income tax returns:
- Employed individuals who earn more than the non-taxable income threshold.
- Those with income sources outside of their primary salary.
- Individual taxpayers with income from self-employment or business activities.
- Those who receive income from capital.
- Expats staying in Indonesia for over 183 days within 12 months or those with intentions to reside there.
Requirements to apply for NPWP Indonesia
To register for an NPWP Indonesia, you’ll need to provide several documents. These are the required documents to start the NPWP application:
- A fully completed registration form.
- Copies of all passport pages.
- A work permit photocopy.
- Domicile certificates for both the individual and their employer.
- A photograph of the employer’s NPWP.
- An authorization letter allowing your representative to handle tax-related matters on your behalf.
The Indonesian tax office might request additional documents listed above.
How to get NPWP in Indonesia?
To apply for NPWP Indonesia, you must first complete the NPWP registration form and meet all requirements. After that, there are three methods to get an NPWP number in Indonesia:
- Directly visit the Tax Office or KP2KP that covers your residence or place of business.
- Mail your registration form and required documents to the relevant Tax Office or KP2KP.
- Opt for online registration through the Directorate General of Taxes’ e-registration portal and upload the required documents.
It’s recommended to use a tax agent in Indonesia. The Indonesian tax system is hard to understand, and a tax agent can help you apply for NPWP Indonesia, file monthly income taxes, file annual taxes, and file taxes on income earned outside Indonesia.
Frequently Asked Questions (FAQs)
What does NPWP mean in Indonesia?
NPWP stands for Nomor Pendaftaran Wajib Pajak, which means Tax Identification Number in Indonesia. It’s a 15-digit number that ensures individuals and organizations, including expats, pay their taxes according to Indonesian regulations.
What is an NPWP number in Indonesia?
The NPWP number is a unique 15-digit Tax Identification Number assigned to eligible taxpayers in Indonesia. Companies in Indonesia can use a single NPWP to handle the taxes of all their qualifying employees.
How to apply for NPWP Indonesia?
To apply for an NPWP in Indonesia, you must complete the registration form and gather all required documents (passport copies, work permit, domicile certificates, and employer’s NPWP photograph). After that, you can deliver your application to the local tax office or KP2KP, mail the registration form and documents to the appropriate tax office or KP2KP, or register online through the e-registration portal of the Directorate General of Taxes.
Do I need an NPWP number to buy property in Bali?
Not everybody needs an NPWP number to buy property in Bali. However, it’s not uncommon for major transactions in Indonesia, like property purchases, to require an NPWP number. Working with a legal agent or real estate expert in Bali is advisable to get a better understanding of the property and tax regulations.
Can foreigners apply for an NPWP number in Indonesia?
Yes, foreigners can apply for an NPWP tax number in Indonesia. This includes expats who have lived in the country for more than 183 days in 12 months or those intending to live in Indonesia. They must provide copies of their passport and relevant residence permits during their NPWP application.
