NIK Becomes NPWP, Ministry Of Finance Finalizes Data Synchronization With Dukcapil Ministry Of Home Affairs

JAKARTA - Director General of Taxes at the Ministry of Finance, Suryo Utomo, said that his party is still finalizing the data synchronization scheme for taxpayers who already have a NPWP with NIK information which is managed by the Directorate General of Population and Civil Registration (Dukcapil) of the Ministry of Home Affairs (Kemendagri).

According to Suryo, this step is intended to smooth out the government's plan to make it easier for individual taxpayers to fulfill their tax rights and obligations.

"We are making adjustments to the system, including what we will prepare in the new tax administration system, and we are not alone because we are collaborating with the Directorate General of Dukcapil, Ministry of Home Affairs to synchronize the NIK with the TIN," he said in a virtual press conference on our State Budget, Tuesday, December 21.

Suryo added that the government is currently preparing an integrated system that can integrate data from these two agencies.

"We also continue to prepare the administrative process because there must be interfacing between the NPWP which is currently the tax base and the NIK base that will be used," he said.

As previously reported, the discourse on simplifying the taxation system was first put forward by the Minister of Finance (Menkeu) Sri Mulyani last week. The Minister of Finance revealed that later in 2023 the NIK will be used as the main basis in the tax collection process to replace the NPWP.

However, the state treasurer ensures that the use of a NIK as a NPWP does not necessarily cause an individual to pay taxes. The reason is, the owner of a NIK as NPWP does not necessarily cause an individual to pay taxes.

Tax payments are made if the income in a year is above Non-Taxable Income (PTKP) or if the individual is an entrepreneur using Government Regulation Number 23/2018 (tax payments are made if the gross turnover is above Rp. 500 million a year).

"If you don't have income, you don't have to pay taxes," he said.

The Minister of Finance gave an example of government assistance to 10 million poor families in Indonesia who actually received the family of hope program, scholarships, assistance for pregnant women and the elderly, and basic necessities. They can certainly not pay taxes because they are poor families, even though they have a NIK.

"So a NIK to become a NPWP does not necessarily cause those who have a NIK to be taxpayers. They must have the economic capacity to be able to pay taxes," closed the Minister of Finance Sri Mulyani.