The implementation of the Population Identification Number (NIK) to replace the Taxpayer Identification Number (NPWP) is getting closer to the signing of the cooperation agreement between the Directorate General of Taxes (DJP) and the Directorate General of Population and Civil Registration (Dikcapil) regarding the use of NIK, population data, and identity cards ( e-KTP) in DGT services.
This is a continuation of the provisions of the Law on Harmonization of Tax Regulations (UU HPP) and Presidential Regulation (Perpres) 83 of 2021 which requires the inclusion of a NIK and/or NPWP in public services as well as matching and updating population data and taxation databases. In the HPP Law, this is regulated in Article 2 paragraph (1a) which reads, “The Taxpayer Identification Number as referred to in paragraph (1) for individual taxpayers who are Indonesian residents shall use the population identification number.”
This means that everyone who has an ID card is subject to tax, right? Certainly not. NPWP is given to taxpayers as a means in tax administration which is used as a self-identification or identity of taxpayers in carrying out their taxation rights and obligations (Article 1 paragraph (6) of Law No. 28 of 2007).
So, Who Is Taxed?
Based on the above definition, NPWP is just an identity to carry out tax rights and obligations. When replaced by a NIK, the public does not need to make a NPWP when dealing with tax administration. Not all tax administration ends in paying taxes. To know when it is taxed, let’s start discussing the object of tax, aka what is taxed.
Tax Object
We are only discussing individual taxpayers here, meaning that the tax subject alias the party subject to tax is definitely an individual. The object of tax – something that is subject to tax – according to Article 4 of the Income Tax Law (UU PPh) is income, i.e. any additional economic capacity received or obtained by the taxpayer, both originating from Indonesia and from outside Indonesia, which can be used for consumption or to increase the wealth of the Taxpayer concerned, by name and in any form.
Does this mean that any income has a tax? No, the state does not levy taxes arbitrarily.
Employee vs Entrepreneur
In general, jobs can be divided into employees and entrepreneurs. Employees can be defined as workers who get a salary from the employer and entrepreneurs are entrepreneurs who have their own business.
For employees, there is PTKP or Non-Taxable Income in the component to calculate the tax. PTKP per year is given at least:
Rp54 million for individual taxpayers;
IDR 4.5 million additional for married taxpayers;
IDR 54 million additional for a wife whose income is combined with the husband’s income;
An additional IDR 4.5 million for each blood family member and family by marriage in a straight line and adopted children, who are fully dependent, a maximum of three people for each family. (Article 7 paragraph (1) of the Income Tax Law).
For example, a single employee, the PTKP per year is IDR 54 million per year or IDR 4.5 million per month. This means that new income is withheld by the company if it is above IDR 4.5 million.
The obligation of individual taxpayers is to report the Annual Individual Tax Return (SPT), one of the data used to fill out the SPT is the Withholding Evidence 1721-A1/1721-A2. For employees who want to know how much tax is deducted for one tax year, it can be seen on the proof of deduction.
For entrepreneurs, there are different calculations. There is a term gross turnover or turnover per month. For individual taxpayers who have a gross turnover of not more than Rp. 4.8 billion in a year and choose to use a 0.5% Final PPh rate based on Government Regulation Number 23 of 2018 they are not subject to PPh on the share of gross turnover of up to Rp. 500 million in one tax year. (Article 7 Paragraph (2a) of the Income Tax Law).
Mandatory and in accordance with the provisions
Tax is a mandatory contribution to the state that is owed by an individual or entity that is coercive under the law, without receiving direct compensation and is used for the needs of the state for the greatest prosperity of the people. The definition of tax according to the Law on General Provisions and Tax Procedures (UU KUP) contains the word forcing, but is accompanied by law. What does it mean? The government will not collect taxes, unless there is a basis or regulation.
We have to pay taxes. Especially when the NIK has replaced the NPWP. There is no longer any reason to disobey tax rules because everyone who has an ID card is a taxpayer. However, that does not mean the state arbitrarily collects taxes. There are rules that regulate what is taxed and the amount.
NIK which replaces NPWP is a step by the government to facilitate tax administration so that people do not need to make NPWP. People are also not confused by the number of cards in their wallets. Tax officials are also more focused on education related to tax obligations that the public must know rather than explaining what a TIN is.
After all, taxes are also used for state needs for the greatest prosperity of the people.
Sumber https://www.pajak.go.id/id/artikel/nik-menggantikan-npwp-apakah-semua-orang-kena-pajak