On 8 July 2022, the Minister of Finance (MoF) issued a Regulation No.PMK-112 which stipulates unification of NIK and NPWP for Individuals, Corporates and Government Agencies. 

On 8 December 2023, the Minister of Finance (MoF) issued a Regulation No.PMK-136 which postpone implementation of unification to 1 July 2024

December 2023

PMK-112 and PMK-136 serve as two of the many implementing regulations of the Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP). Under the new rules, taxpayers that reside in Indonesia should start using their Residential Identity Number (Nomor Induk Kependudukan/NIK) as a Tax ID to replace the old version of NPWP.

Following are few key highlights of the PMKs.

1. Taxpayers with a Residential Identity Number (NIK)

Starting from 14 July 2022, individual taxpayers, including Indonesian citizens and foreigners residing in Indonesia, are required to use their NIK for tax administration purposes. The Directorate General of Taxes (DGT) will activate the NIK as the new Tax ID based on the taxpayer’s registration application or ex-officio, to replace old version 15-digit NPWP.

During conversion from old version NPWP to NIK, the DGT may cross-verify taxpayers’ identity with data at the Directorate General of Population and Civil Registration (Ministry of Home Affairs).

2. Taxpayers without a Residential Identity Number (NIK)

For taxpayers who do not have NIK (i.e. non-resident individuals, Corporate and Government agency taxpayers), DGT will implement a new 16-digit-NPWP to align the digit number of those using 16 digit NIK. The DGT will provide 16-digit-NPWP for newly registered taxpayers starting 8 July 2022 and revise the old NPWP to 16-digit NPWP.

The PMK-136 postponed implementation of new NPWP to 1 July 2024. Therefore, the old version NPWP can only be used until 30 June 2024.

This publication is intended for general information only and should not be interpreted as substitute to any of  our professional advices. All of information contained in this publication refers to the featured regulation as per the date of this publication.