In order to provide fairness in taxation is build the right balance between the rights of state and the rights of citizens as taxpayers, the General Provisions and Tax Procedures accommodates the rights and obligations of taxpayers.
TAXPAYER ENROLLMENT OBLIGATION
In accordance with the self-assessment system, taxpayers obligated to enroll themselves to get Taxpayer Identification Number (TIN) via Tax Office (KPP) or Tax Service, Counseling, and Consultation Office (KP2KP) whose residential areas or stands are located in the tax office region. TIN registration can also be done through e-registration.
For both individuals and corporate (limited company, limited partnership, enterprises, firm, joint venture, cooperative, partnership, association, foundation, mass organization, socio-political organization) that qualified as a taxpayer, shall enroll themselves to the KPP or KP2KP to obtain a TIN. Individuals require to have a compliance with the subjective and objective conditions to obtain TIN.
Taxpayer Identification Number (TIN)
TIN is a number given to taxpayers as a means of identity for each taxpayer in carrying out their rights and obligations in the field of taxation.
To obtain the TIN, taxpayers must register at the KPP or KP2KP by filling out the registration form and attach the necessary administrative requirements, other enroll on-line through e-registration.
REQUIREMENTS:
Documents required for TIN's registration are:
1. For individual taxpayers whom does not run a business or professional service such as:
- copy of identity cards for citizens; or
- copy of passport, copy of Limited Stay Permit (KITAS) or Permanent Residence Card (KITAP) for foreigners.
2. For individual taxpayers, whom run a business or professional services as a:
- copy of identity cards for Citizen or passport, copy of Limited Stay Permit (Permit) or Permanent Residence Card (KITAP), for foreigners; and
- business license document issued by the competent authority or certificate of business or professional service from local government officials of at least local leader.
3. In case an individual taxpayer is a married woman whom taxed separately for requesting a written separation agreement of income and asset, chose to carry out the rights and obligations of tax separately from spouse, the petition must also be accompanied by:
- copy of spouse's TIN card;
- copy of Family Card, and
- copy of the income and asset separation agreement, or waiver chose to carry out the rights and obligations of tax separately from spouse.
4. For a corporate taxpayer that has tax liability, levying and / or collecting tax in accordance with the government regulations, including the permanent establishment, contractor and / or operator in the field of upstream oil and gas, such as:
- copy of deed or documents of incorporation and alteration for domestic corporate taxpayer, or an appointment letter from the head office for permanent establishment;
- copy of director's TIN, or copy of passport and residence certificate from the local government officials of at least the local leader for foreign citizens; and
- business and / or activities license documents issued by the competent authority or certificate of business from local government officials of at least the local leader.
5. Corporate taxpayer that has tax obligation to levying and / or collecting tax in accordance with the government regulations, including Joint Venture as a taxpayer, such as:
- copy of Cooperation Agreement / Deed as a form of Joint Operation;
- copy of TIN card of each member of the Joint Operation;
- copy of TIN card of board member of Joint Operation, or a copy of passport and residence certificate from the local government officials of at least the local leader for foreign citizens, and
- business and / or activities license document issued by the competent authority or certificate of business from the local government of at least the local leader.
6. For treasurer whom indicated to levying and / or collecting tax in accordance with the government regulations, such as:
- Treasurer appointment letter; and
- ID card.
7. For taxpayer as a subsidiary companies and taxpayer as a certain entrepreneur, such as:
- copy of base headquarter's TIN;
- certificate as a branch for corporate taxpayer; dan
- business license document issued by the competent authority or certificate of business from local government officials of at least the local leader.
REGISTRATION PROCEDURES:
1. Online via e-Registration web application
Done electronically by filling out the Taxpayer Registration Form on the e-Registration Applications that available at website of DGT (www.pajak.go.id). The documents required above, then sent to the KPP where taxpayer registered. These documents should be accepted by the KPP at the latest 14 (fourteen) working days. Delivery of the required documents can be done by uploading the softcopy documents through e-Registration Application or send using signed document delivery mail.
2. Direct Registration
To comply direct registration, applicant could submit a written application through filling out the Taxpayer Registration Form. The application form should be enhanced with required documents.
Written application submitted to the KPP or KP2KP whose jurisdiction includes the residence or domicile or place of taxpayer business. Submission of a written application can be?:
a. directly;
b. by mail; or
c. through the company's freight forwarding services or courier services.
DURATION OF COMPLETION:
Once all the requirements of Application for Registration accepted by KPP or KP2KP, receipt letter will be issue. Furthermore, KPP or KP2KP issuing TIN Card and Certificate of Registered Taxpayer (SKT) no later than 1 (one) working day after Receipt Letter issued. TIN and SKT will be sent by registered mail.
Please note that all of services provided by DGT is free of charge.
TIN purposes are:
- As a means of tax administration;
- As the identity of the taxpayer;
- Maintain order in the payment of taxes and taxation administrasirasi supervision;
- Being in the public service requirements, such as passports, bank loans and auctions.
By having TIN, taxpayers obtain several indirect benefits, such as:
- meet one of the requirements when performing maintenance Trading License (License);
- one of the conditions of making checking account in the banks; and
- meet the requirements to be able to follow the tenders perform by the Government.
CONFIRMATION OF TAXABLE ENTREPRENEURS (PKP)
TIN cardholders shall be confirmed as a Taxable Entrepreneur (PKP) by KPP or KP2KP after fulfills certain requirements. Terms to be confirmed as PKP is an individual entrepreneur or corporate is performing delivery of taxable goods or taxable services by the number of gross turnover / gross revenue (turnover) exceeding Rp 600.000.000, - a year.
One that do not meet the requirements, can also report the business to be confirmed as PKP. For entrepreneur who have confirmed as PKP, are required to levy the Value Added Tax (VAT) from each buyer / service users by issuing tax invoices.
Levied VAT, then reported in the monthly report (periodic tax return) and if it turns out there is VAT to be deposited to the bank or post office, it must be paid prior to the KPP to where taxpayer is registered before submit the tax return. KPP or KP2KP will conduct review on the existence and activities of the business in the place of business taxpayers who have been confirmed as the PKP.
