In Article 24 paragraph (2) PER-04/2020 it is explained that the DGT can determine WP NE as long as it meets the criteria, one of which is:
“Determination of Non-Effective Taxpayers is carried out on Taxpayers who meet the following criteria:
d. Individual taxpayers who reside or are abroad for more than 183 (one hundred and eighty three) days within a 12 (twelve) month period that have been proven to be foreign tax subjects in accordance with the provisions of laws and regulations in the field of taxation and are not intends to leave Indonesia forever;”
(Article 24 paragraph (2) letter d PER-04/2020)
To apply for the determination of WP NE, we can submit it electronically via the https://djponline.pajak.go.id/account/login page or in writing directly to the KPP by attaching a WP NE Statement and supporting documents showing that the Taxpayer has meet the criteria for WP NE as stipulated in Articles 25 and 26 PER-04/2020.
After that, the DGT will issue a BPE (Electronic Receipt of Receipt) or BPS (Proof of Receipt of Letters) which will then be followed up with administrative research by the DGT. Regarding the decision to accept or not the application for the determination of WP NE, the DGT will issue its decision no later than 5 working days after the BPE/BPS is submitted to the WP.
Thus, if your application for the determination of your WP NE is received by the DGT, you will no longer have the obligation to make tax payments and report your Annual Individual Income Tax Return. In addition, you will not be subject to administrative sanctions for not reporting your SPT (via a Tax Collection Letter) and you will not be issued a letter of reprimand, even though the Taxpayer does not submit an Annual SPT. This is because Taxpayers with Non-Effective status are no longer administratively monitored for their tax obligations by the DGT. However, from time to time the DGT still has the authority to reactivate WP NE status if the WP no longer meets the criteria as WP NE.