This integration of NIK and NPWP will later become a Single Identity Number (SIN) which helps in synchronization, verification and validation in the context of registration and changes to taxpayer data as well as to complete the database in the taxpayer master file.
The Directorate General of Taxes (DGT) will have access to data and information related to tax reporting such as business activities, tax circulation, income/wealth, financial transactions, foreign exchange flows, credit cards, and financial reports/business activities from third parties.
This integration is expected to be able to increase the tax ratio because it is able to encourage tax compliance with the self-assessment system that applies in Indonesia. Through this integration, taxpayers will be expected to be more honest in reporting their taxes. Because with more complete information in the DGT system, it will be difficult for taxpayers to hide their source of income as a source of calculating their taxes.
The highest legal basis for using NIK as NPWP is contained in article 2 paragraph 2 of Law no. 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP). Meanwhile, regulations that require NIK-NPWP validation are Minister of Finance Regulation Number 112/PMK.03/2022 concerning NPWP for Individual Taxpayers, Corporate Taxpayers, and Government Agency Taxpayers, which is the implementation of article 2 paragraph 2 of the HPP Law.
The NIK-NPWP validation policy is not merely a DGT policy, but a national policy, so good collaboration between ministries or agencies, both central and regional, is needed and confirmed by a ministerial letter to the local regional government. Especially through the Inspectorate General of each ministry or agency, so that they are ready for the implementation of the 16-digit TIN on January 1, 2024.
Limits for Using Old TIN
Until 31 December 2023, taxpayers can still use their NPWP and NIK for their tax purposes, but after that date they can only use their NIK to exercise their tax rights and/or obligations. The change of NIK to NPWP will be valid forever.
Are all residents who already have NIK required to validate NIK as NPWP? No, only Indonesian Citizens (WNI) who already have an NPWP before the issuance of PMK 112/PMK.03/2022 need to validate. Not all citizens/residents who have an ID card automatically become taxpayers. Only applies to residents who have met the subjective and objective requirements as taxpayers.
NIK-NPWP validation can be done by updating data independently by taxpayers on the Tax.go.id page (using their respective identities/NPWP), through the Kring Tax call center 1500200, or coming directly to the nearest Tax Service Office (KPP).
There are several criteria for taxpayers who must update their independent data, namely individual taxpayers who are residents (have a NIK) with normal and non-effective NPWP status, based on the results of adjustments to identity data as taxpayers whose results are invalid or not in accordance with population data .
The references used in updating this data are identity cards (KTP) and family cards (KK) of taxpayers. Meanwhile, the main elements that must be clarified are the Resident Identity Number (NIK), name, place and date of birth of the taxpayer.
The taxpayer’s address according to the KTP is not validated when updating the NIK, but only as data. So the registered address of the NPWP does not have to match the NIK address and does not make it invalid if it is registered with a KPP that does not match the NIK address.
If the validation fails because the NIK and KK do not match the population data, taxpayers can contact the Dukcapil office to confirm the data discrepancies.
The smoothness of the Dukcapil web service also has an effect when taxpayers update their data independently. If the Dukcapil system has an error, it may not be validated even though the actual data is in accordance with the Dukcapil data.
Taxpayers as Foreign Citizens (WNA) and Corporate Taxpayers do not need to update data. The NPWP for both will be in the form of 16 digit numbers, in the form of the number 0 (zero) plus the 15 digit NPWP currently registered. So foreign taxpayers do not update data based on KITAS or passport.