Government Issues New Tax Tariff Rules For NPWP And NIK Funding

Illustration (Photo: Doc. Antara)

JAKARTA - The Directorate General of Taxes (DGT) of the Ministry of Finance issued an announcement letter Number PEN-6/PJ.09/2024 concerning the Use of Taxpayer Basic Numbers in the Tax Administration System.

One of the points contained in the letter is that it will not apply an additional 20 percent tax rate for taxpayers with a Taxpayer Identification Number (NPWP) which is integrated with the Population Identification Number (NIK).

This integration is required to have been administrative by the Directorate General of Population and Civil Registration as well as with the Directorate General of Tax Administration System.

"In the event that the identity of the recipient of the income as referred to in the number 4 letter a is filled with the NIK which has been amended by the Directorate General of Population and Civil Registration and has been integrated with the Administrative System of the Directorate General of Taxes as referred to in number 2, the tariff is higher as referred to in Article 21 paragraph (5a), Article 22 paragraph (3), and Article 23 paragraph (1a) of the PPh Law is not imposed on the cutting and / or collection of PPh on the person in question, "quoted from the announcement.

As for point 8 of the announcement, it is explained to the individual population as referred to in number 7 who have not registered by activation of the NIK as the NPWP, the Director General of Taxes can activate the NIK as the NPWP in accordance with the provisions of the legislation in the tax field.

For information, the government is encouraging the public to activate or match the NIK with the NPWP. Because as of July 1, 2024, the NIK will become the NPWP in accordance with the Minister of Finance Regulation (PMK) Number 136 of 2023.

Previously, in the rules contained in Law (UU) Number 36 of 2008 concerning Income Tax (PPh), taxpayers who do not have NPWP are subject to a tariff of 20 percent higher than taxpayers who have NPWP.

In addition, the PPh Article 21 tariff is set starting from 5 percent for income up to IDR 60 million per year to a maximum of 35 percent for income above IDR 5 billion.