A.
Category for an Individual Taxpayer
1.
Resident
A
resident tax subject shall be:
·
An individual residing in Indonesia or
·
An individual who is present in Indonesia for more than 183
days in any 12 month period, or
·
An individual who is present in Indonesia in a tax year with an
intention to reside in Indonesia.
2.
Non-Resident
A
non-resident tax subject shall be:
An
individual not residing in Indonesia or who is present in Indonesia
for not more than 183 days in any 12 month period.
·
who is conducting a business or carrying out activities through
a fixed based in Indonesia.
·
Who derives income from Indonesia other than from conducting
business or carrying out activities through a fixed based in
Indonesia.
A
taxpayer is an individual or a body which, pursuant to provisions in
the tax law, is required to fulfill tax obligations, including tax
collection or tax withholding of certain taxes. (Article 1- paragraph
(1) law No. 16 Year 2000 ).
-
Tax
Identification Number ( Nomor Pokok Wajib Pajak - NPWP)
1.
What is a Tax Identification
Number ?
The
Tax Identification Number (NPWP) is a number issued to taxpayers by
the tax office to indentify taxpayers and assist them in fulfilling
their tax obligations. (Article 1- paragraph (5) law No. 16 Year 2000
).
2.
How to get an NPWP
Taxpayer
shall be obligated to register at the tax office in the district in
which the taxpayer resides (Article 2- paragraph (1) law No. 16 Year
2000 ) by submitting the following documents:
a.
Registration and change of data form
b.
Copy of passport
c.
Copy of limited stay permit card (KITAS)
d.
Copy of work permit (for a taxpayer who is an employee)
e.
Copy of tax identification number of the employer (for a
taxpayer who is an employee)
f.
Power of attorney (if his/her registration process is done by
another party)
g.
Copy of business permit (for a taxpayer who is conducting
business or is an independent professional)
An
individual taxpayer who is an entrepreneur as mentioned in the
Circular Letter of Director General of Taxation No. SE-40/PJ.41/2000
is an individual who has several places of business activities. He/she
is obligated to register his/her place of business activities as
follows:
a.
A taxpayer who has several places of business activities in one
operational area of the tax office must register each place of
business in the said tax office.
b.
A taxpayer who has several places of business activities
located in the districts of several tax office must register each
place of business in each related tax office.
3.
What if the taxpayer does not want register?
a.
The Director General of Taxation has the authority to issue an
NPWP officially. (Article 2- paragraph (4) law No. 16 Year 2000).
b.
If a taxpayer fails to register intentionally resulting in
losses to the state revenue, he/she shall be sentenced to imprisonment
for a period not exceeding 6 year and shall be subject to a fine for
an amount not exceeding four times the tax unpaid/underpaid. (Article
39- paragraph (1) law No. 16 Year 2000).
4.
What if there is a change in taxpayer’s date?
A
taxpayer may inform the tax office of any change in his data (such as
change of address, change of employer, etc.) by filing the
registration and change of data form at the tax office where the
taxpayer is registered.
5.
What if the taxpayer is leaving Indonesia permanently or has
applied for an Exit Permit Only to the Immigration Office?
A
taxpayer should state in writing that an Exit Permit Only (EPO) will
be forwarded to the tax office where he is registered, so that the tax
office will not issue a tax collection letter due to non filing or non
payment of the monthly Article 25 income tax.
The
following are to be attached when submitting the deregistration form
(now known as registration and change of data form):
a.
Exit Permit Only (EPO)
b.
Statement from the employer stating that a taxpayer’s
contract in Indonesia has ended (for a taxpayer who is an employee)
c.
Cancellation of business permit letter (for a taxpayer who is
conducting business or is an independent professional)
d.
Power of attorney (if his/her deregistration process is handled
by another party)
e.
Original copy of taxpayer identification number card.
Before
forwarding the EPO, the taxpayer should fulfill other tax obligations
such as:
a.
Pay
any tax due which has not been paid.
b.
File an annual individual tax return for the year of departure,
by providing a closes approximation of his/her global income.
c.
File applications for deregistration of NPWP.
C.
Monthly and Annual Income Return
After
registering and obtaining the NPWP, a taxpayer has to file the
following tax returns:
a.
Monthly Article 25 income tax return using tax payment slips (SSP)
at the latest 20 days from the end of the month. An individual who is
not conducting a business or who is not an independent professional is
exempted from filing the monthly returns.
b.
Annual individual tax return (form 1770) at the latest 3 months
from the end of a tax year. The Form 1770 can obtained from the tax
office. (Article 3- paragraph (3) law No. 16 Year 2000).
What
the taxpayer should know before completing the tax return:
a.
Every taxpayer has to complete the tax return in Bahasa
Indonesia using latin letters, Arabic numerals, and Rupiah curren
cy, then sign and file it at the tax office where the taxpayer
is registered. (Article 3- paragraph (1) and 1 (a) law No. 16 Year
2000).
b.
A taxpayer has to complete and file a tax return correctly,
thoroughly and clearly. The tax return has to be signed. (Article 4-
paragraph (1) law No. 16 Year 2000).
c.
Where a tax return is completed and signed by a person other
than the taxpayer, a power of attorney must be attached. (Article 4-
paragraph (3) law No. 16 Year 2000).
d.
Completion of annual income tax return by taxpayer who have to
maintain bookkeeping records must be accompanied by financial
statements in the form of balance sheet and income statement as well
as other information required to calculate the amount of taxable
income. (Article 4- paragraph (4) law No. 16 Year 2000).
e.
For filing of 2001 annual income tax return, a taxpayer has to
attach a statement of assets and liabilities (MOF Decree No.
534/KMK.04/2000 dated December 22, 2000)
f.
The filing of a tax return may be done by the registered mail
through the Post Office or by such others means regulated by the
decree of the Director General of Taxation. (Article 6- paragraph (2)
law No. 16 Year 2000).
D.
Tax Payment
The
taxpayer has to pay the tax due to the state treasury via Post Office
and/or a State Owned Bank or local Government Owned Bank or other
place of payment stipulated by the Minister of Finance. (Article 10-
paragraph (1) law No. 16 Year 2000).
1.
Payment of Monthly Installment Article 25 Income Tax
For
Monthly Article 25 Income Tax Return, the monthly tax installment
payment is due no later than 15 days from the end of the month. If the
15th is a public holiday, Saturday or Sunday, the due date is the
following day (Article 9- paragraph (1) law No. 16 Year 2000).
The
amount of monthly installment which should be paid by a taxpayer shall
be equal to the tax due according to the annual income tax return for
the preceding year, deducted by income tax under Article 21,22,23 and
24: then divided by 12 (twelve) or the number of months for part of
the tax year. For the months before the due date of the annual income
tax return (January – February), the amount of monthly Article 25
income tax shall be equal to such amount paid in the last month
(December) of the preceding tax year.
For
n individual taxpayer who is conducting a business or is an
independent professional and has several places of business, the
monthly Article 25 income tax payable in the current tax year shall be
1 % (one percent) of the monthly gross turnover from each place of
business (Section 3 of Circular Letter No.: SE-40/PJ.41/2000 dated 29
December 2000).
For
a new taxpayer who is conducting a business or is an independent
professional, the monthly Article 25 income tax shall be equal to the
income tax liability calculated using the normal tax rate on
annualized net income, divided by 12 (twelve). The amount of that net
income is previously deducted by the non-taxable income threshold
amount (Article 2 of Minister of Finance Decree No. 522/KMK.04/2000
dated 14 December 2000.
However,
for a new taxpayer other than the above mentioned, the monthly Article
25 income tax shall be equal to the income tax liability calculated at
10 % of annualized net income, divided by 12 (twelve). The amount of
that net income is previously deducted by the non-taxable income
threshold amount (Circular Letter Number SE-31/PJ.4/1995 dated June
21, 1995.
2.
Payment of Annual Individual Tax Return Article 29 Income Tax
The
tax underpayment based on the annual tax return should be paid by the
25th of the third month after the end of a tax year or part of part of
year, before the annual tax return is filed (Article 9- paragraph (3)
law No. 16 Year 2000).
3.
Payment of Tax
Assessment
Additional
payments required as result of a Tax Collection Letter (STP), Tax
Underpayment Assessment (SKPKB), Additional Tax Underpayment
Assessment (SKPKBT), or Tax Correction Notice, Decision letter on
Objection or Appeal should be paid at the latest one month from the
date of issuance (Article 9- paragraph (3) law No. 16 Year 2000).
4.
Payment of Exit Tax
An
individual taxpayer who travels abroad has to pay exit tax at a
counter located at each point of departure from Indonesia through
land, sea, and air. The tax is paid at the counter by using an Exit
Tax Form or paid at the post office or a bank authorized to receive
tax payments on behalf of Director General of Taxation by using tax
payment slip (SSP). (Article 25- paragraph (8) law No. 17 Year 2000).
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