Getting To Know Business Field Classification Codes: Understanding, Functions And Characteristics

Illustration of business field classification code (Pixabay/RayPhotosPerth)

YOGYAKARTA Business Field Classification or abbreviated as KLU is a code made by the Directorate General of Taxes (DJP) to classify taxpayers based on the type of business entity.

With this code, taxpayers can easily fulfill their tax obligations, and take advantage of tax incentives provided by the government.

The KLU code refers to the classification of Indonesian business fields (KBLI) made by non-Ministerial government agencies that organize government affairs in the field of statistics. The institution in question is the Central Statistics Agency (BPS).

So that you better understand the business field classification code, let's see the full explanation below.

According to the Regulation of the Director General of Taxes Number PER-12/PJ/2022, the KLU is the classification of taxpayer economic activities.

The KLU code contains information on activities, business activities, free work, or work in work relationships carried out by taxpayers.

Business field classification codes are compiled based on several categories, including:

Thus, the KLU code can be interpreted as a code made by the DGT to group taxpayers into types of business entities that are classified based on several predetermined categories.

In Article 2 paragraph (3) PER-12/PJ/2022, the KLU code created by the DGT is intended for taxpayers with the following categories:

Especially for individual taxpayers, the grouping is as follows:

Usually, the KLU code can be found in a tax certificate (SKP), tax collection certificate (SPKP), and tax SPT form.

According to Article 2 paragraph (2) PER-12/PJ/2022, the function of the business field classification code is as follows:

The characteristics of the business field classification code, which consists of 5 digits of numbers used to group business types and taxpayers.

The five digits of the number have been determined by the DGT, so that taxpayers can simply look for it based on the tax provisions that have been determined.

Furthermore, the 5 digits of numbers contained in the KLU consist of:

Meanwhile, the structure and code administration for the KLU are as follows:

That's information about business field classification. Get news updates of other options only on VOI.ID.