In the world of taxation, SKD is useful as a population identity containing information, in which country the taxpayer is registered or registered as a resident based on the tax administration.
The possession of this domicile certificate is indeed quite important. One of them is if you want to open an account, apply for a loan, get married, apply for a job, and other administrative activities. Especially if you are from out of town, this certificate of domicile will be a mandatory requirement for every administrative activity that requires complete data on a person.
In addition, a domicile certificate can also be a mandatory requirement and is very much needed for tax administration and other permits.
what are the functions of a domicile certificate?
The functions of a domicile certificate (SKD) in general are as follows:
– In lieu of a transfer certificate.
– Needed when applying for scholarships, NPWP, school registration, applying for jobs, requirements as recipients of – – government assistance, and other administrative requirements.
– To support mapping efforts in areas where migrants are concentrated.
– The government is also now conducting zoning, especially for new companies through the Company Domicile Certificate (SKDP).
– Required for tax administration and other permits.
The domicile letter is also mandatory, based on Article 15 paragraph 1 of the Population Administration Law. Every newcomer is obliged to take care of a moving certificate or SKD at the authorized agency, in this case the Village Office or Village Office.
In tax, there is Regulation of the Director General of Taxes No. PER-28/PJ/2018 concerning Certificate of Domicile for Indonesian Domestic Tax Subjects in the Framework of Application of Double Taxation Avoidance Agreement. It states, SKD for Indonesian Domestic Tax Subjects (SPDN) is a certificate issued by an authorized official in this case the Director General of Taxes for domestic taxpayers, the contents of which explain that the taxpayer in question is a domestic tax subject (Indonesia), in accordance with in the Income Tax Law (UU PPh).
How to Apply for a Certificate of Domicile
Offline SKD Submission
In the past, the submission of a domicile certificate was done manually. You need to bring your personal data, submit it to the local RT and RW to make a cover letter to the Village Office, Output Office, or Tax Office (for tax-related management) to make an SKD.
After the cover letters from the RT and RW have been completed, please go to the Village Office or Kelurahan Office. Also include your identity such as a photocopy of your KTP and KK. If the SKD submission is related to taxation, then you need to include several additional documents such as NPWP, Annual SPT, and other administrative requirements. The application process may take a long time or you will even be rescheduled to collect a domicile certificate at the Kelurahan Office or registered KPP.
Online SKD Submission
To make an SKD in tax matters, previously you had to do it manually or had to go to a registered Tax Service Office (KPP). However, based on PER-28/PJ/2018, SKD applicants can do it online via the DGT official website through the e-SKD feature.
Through this feature, it is hoped that it can reduce the burden on taxpayers and reduce administrative burdens for the tax office thanks to submissions and issuances that are carried out thoroughly through the online system. Through this feature, taxpayers can apply for P3B benefits for the current tax year/the year the application was filed or the previous tax year.
For example, a taxpayer submits an application for 2020, then the benefits of the P3B for which a domicile certificate can be requested are the 2020 or 2019 tax year and before as long as 5 years have not expired.
Then, how to apply for an SKD online through the DJP Online e-SKD feature? Taxpayers need to activate the e-SKD menu first, as follows:
Login by entering your NPWP, password, and security code.
> Login to my profile.
> Check the e-SKD section in the Add/Less Access Rights section at the bottom of the menu.
> Click Change Access and click OK.
> When finished, please login again.
> Next, you will see an e-SKD display, which means you can apply for an SKD online.
> This stage can also be done for foreign taxpayers who need it.
The following are the Terms and Conditions for Submission of SKD
In some areas the terms and conditions may vary slightly depending on the needs of the area. However, in general the files or documents needed to arrange a domicile letter for administrative needs outside of taxation are as follows:
Application letter showing the validity of documents and data (signature above Rp6,000 stamp).
Passport photo size 3×4.
Cover letter from the head of RT and RW which is adjusted to the data on the ID card.
Power of attorney if the SKD management is represented with a stamp of Rp. 6,000
Prepare original ID and KK and photocopies.
There is no fee for making the domicile certificate itself, except for voluntary contributions that you can give to the RT or RW concerned.
It is different if this SKD is for tax purposes. So the terms and conditions are as follows:
The status of Domestic Tax Subject (SPDN) is in accordance with the PPh Law.
Already have NPWP.
Have submitted the Annual SPT which has become an obligation
Meet the administrative requirements of SKD
The administrative requirements in question are:
Filed for one partner country, one tax year, and one transaction, and
Loading counter transaction information in partner countries.
Furthermore, information about the counterparty in the said partner country should at least contain the following information:
Name of taxpayer in partner country,
Taxpayer identification number and/or address of the counterparty, and
Explanation of income originating from the counterparty.
If these requirements have been met and complete, the tax office will provide an SKD which is usually issued within 5 working days. If the tax office feels that the requirements are not perfect, a letter of SKD rejection will be issued.
Domicile certificate issued in digital form, you can get the physical form if needed. Taxpayers only need to come to the tax office to ask for validation.