What is Non-Effective Taxpayer?

NPWP (Taxpayer Identification Number) according to the Law on General Provisions and Tax Procedures (UU KUP) Number 28 of 2007 is a number given to taxpayers as a means of tax administration which is used as a personal identification or identity of the taxpayer in exercising their rights. and tax obligations.

In the explanation of Article 2 of the KUP Law, it is stated that all taxpayers who have met the subjective and objective requirements in accordance with the provisions of the tax laws and regulations based on the self-assessment system, are required to register at the Directorate General of Taxes office to be recorded as taxpayers and at the same time to obtain a TIN.

TIN is the first and foremost thing for a taxpayer in fulfilling his tax obligations. Basically, if a taxpayer already has an NPWP, then he has two tax obligations that must be fulfilled, namely paying taxes if his income has passed the PTKP (Not Taxable Income) limit and also reporting the Annual SPT.

In the case of annual SPT reporting, it must be done if the NPWP status is active, even though there is no activity or income at all for one year running. Unless the TIN is in non-effective status.

Definition of Non-Effective Taxpayer

According to the Regulation of the Director General of Taxes Number PER-04/PJ/2020 concerning Technical Instructions for the Implementation of Administration of Taxpayer Identification Numbers, Electronic Certificates, and Confirmation of Taxable Entrepreneurs, Non-Effective Taxpayers are Taxpayers who do not meet the subjective and/or objective requirements but NPWP deletion has not been carried out.

In this regulation, several criteria are also regulated for a taxpayer to be determined as a non-effective taxpayer, namely Article 24 paragraph (2) which reads:

Determination of Non-Effective Taxpayers is carried out on taxpayers who meet the following criteria:

a. Individual Taxpayers who carry out business activities or independent work who are actually no longer conducting business activities or independent work;

b. Individual Taxpayers who do not carry out business activities or independent work and whose income is below the PTKP;

c. Individual Taxpayer as referred to in letter b who has NPWP to be used as an administrative requirement, among others, to obtain a job or open a financial account;

d. Individual Taxpayers who reside or are abroad more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months which have been proven to be subject to foreign tax in accordance with the provisions of the legislation in the field of taxation and do not intends to leave Indonesia for good;

e. Taxpayers who apply for NPWP deletion and a decision has not been issued;

f. Taxpayers who do not submit SPT and/or there are no tax payment transactions either through self-payment or through withholding or collection of other parties, for two consecutive years;

g. Taxpayers who do not meet the provisions regarding the completeness of the NPWP registration document as referred to in Article 10 paragraph (7);

h. Taxpayer whose address is unknown based on field research;

i. Taxpayers who are issued a Branch NPWP in office in order to issue SKPKB for Value Added Tax for self-construction activities;

j. Government agencies that do not meet the requirements as tax withholders and/or collectors but have not deleted their NPWP; or

k. Taxpayers other than those referred to in letters a to j that no longer meet the subjective and/or objective requirements but have not deleted their NPWP.

How to Know the Status of Active or Non-Effective Taxpayers

Then how can we find out the active status of our NPWP? First, we can find out through the official website of the Directorate General of Taxes, namely www.pajak.go.id.

Login using NPWP and password then click on the “Profile” menu, then click “Tax Info” then it will be displayed whether our status is an active or non-effective taxpayer.

Second, we can come to the nearest Tax Service Office (KPP) or Tax Service, Counseling and Consultation Office (KP2KP). Third, we can also ask questions through registered KPP social media.

Influence of Non-Effective TIN in Tax Affairs

What happens if our status as a taxpayer is not effective in our tax matters? If the taxpayer status is non-effective, it will be released from its tax obligations, namely there is no need to report our Annual SPT and no need to worry about being fined for being late or not reporting our Annual SPT.

However, as a result, we also lose our tax rights, such as not being able to reprint NPWP cards, not being able to change NPWP data, not being able to transfer taxpayers, and other tax rights that require our NPWP status to be active.

How to Reactivate Non-Effective Taxpayer Status to Active Taxpayer

So can the non-effective taxpayer status become active again? The answer is yes. There are several ways to reactivate non-effective taxpayer status.

The first and easiest way is to report the Annual SPT on the website www.pajak.go.id. After completing the annual SPT reporting, the non-effective taxpayer status will automatically change to active again. The second way, we can apply for the reactivation of a non-effective NPWP to the registered KPP. The required conditions are:

1. For Individual Taxpayers, the conditions are; a form that is completely filled out and affixed with a signature, photocopy of ID card, and photocopy of NPWP.

2. For Corporate Taxpayers, the requirements are; a form that is completely filled out and affixed with the agency’s stamp and signature of the director, photocopy of the director’s ID card, photocopy of the director’s NPWP, photocopy of the company’s NPWP, and a photocopy of the deed of establishment and the latest deed of change of entity (if any).

If we are outside the area of ​​the registered KPP, we can send the forms and supporting documents through the courier service to the address of the registered KPP.

Then, the last way to reactivate non-effective taxpayer status is to contact the KringPajak service number which is 1500200 by preparing the required data, such as name, NPWP, NIK (for individual taxpayers), residential address, registered email address. in the DGT information system, telephone numbers are registered in the DGT information system, as well as EFIN (Electronic Filling Identification Number).

From the explanation above, we can conclude that if we have registered a TIN, then we as good taxpayers must also be ready to carry out our tax obligations so that there are no obstacles in our tax administration matters.