JAKARTA - Director of Counseling, Services and Public Relations of the Directorate General of Taxes (DGT) Neilmaldrin Noor said that the application of a Population Identification Number (NIK) to a Taxpayer Identification Number (NPWP) does not automatically cause NIK owners to be subject to taxes.
"For tax imposition, the NIK holder must have met the subjective (including tax subject) and objective (earning a year's income above the Non-Taxable Income limit)," said Neilmaldrin, quoted by Antara, Sunday, October 10.
He explained that the application of NIK to NPWP will basically strengthen the ongoing tax administration reforms.
The implementation will also integrate the tax administration system with the population database, as well as provide convenience and simplicity in administration and national interests.
Previously, Neilmadrin said that Individual Taxpayers (WP) must register with the Tax Service Office (KPP) to get a NPWP.
However, in the Law (UU) on the Harmonization of Tax Regulations (HPP), the function of the NIK is added to simultaneously serve as NPWP for WP OP.
"With this new provision, WP OP does not need to bother registering to the KPP, because the NIK already functions as an NPWP," he said.
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