Govt to Combine National Identity Number and Taxpayer Registration to Get Tax from Public? Director General of Taxes: We Want to Tidy Up Administration

3 min read
Suryo Utomo

Last updated on May 18th, 2021 at 05:19 am

The government plans to combine a national identification number (NIK) and a taxpayer registration number (NPWP). This plan is in line with the government’s program to implement a single identity or Single Identity Number (SIN).

Director-General of Taxes Suryo Utomo explained that the process of merging NIK and NPWP is currently still running. Combining NIK and NPWP into one single data does not mean that all residents will be taxed. By combining the NIK and NPWP into one, there will be synchronization and validation of taxpayer data.

“The process continues,” said Suryo, after a meeting with Commission XI of the House of Representatives of the Republic of Indonesia, Thursday, September 3.

Suryo also added that people who are subject to fixed tax are those with income above non-taxable income (PTKP), with an income of Rp 54 million per year or Rp 4.5 million per month.

“Each person has a NIK, the person who pays the tax is also an Indonesian, although the one who is subject to the tax is PTKP. NPWP is an identity number, the actual means of identification,” said Suryo.

The main reason for the Directorate General of Taxes (DJP) to unify the NIK and NPWP data according to Suryo Utomo is to make it easier for the DJP to monitor people who are taxpayers and will increase Indonesia’s tax ratio.

The Director-General of Population and Civil Registration of the Ministry of Home Affairs, Zudan Arif Fakrulloh also explained that the merger was not intended to collect taxes from people who have NIK on their Identity Cards (KTP).

“It is not possible because there are many children, NIK from births, school children, retirees, all have a NIK, there is no connection to taxation. We want to tidy up the administration,” he said in a written statement, Friday, September 4.

If the policy has been implemented, the NPWP card is not required, because in the future Indonesia only needs 1 card.

According to Zudan, apart from synchronizing the NIK with the NPWP, data from other ministries such as the Social Security Administrator for Health (BPJS Kesehatan) can be synchronized with the NIK data.

Load More By Noto
Load More In Indonesia
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Check Also

China and UAE Celebrate 40 Years of Diplomatic Relations: All the Sectors for Partnership

Celebrating 40 years of diplomatic ties, China and the United Arab Emirates (UAE) are pois…