Taxpayer
A Taxpayer (Wajib Pajak) is any individual or entity, including tax payers, withholding agents, and tax collectors, that holds tax rights and obligations under Indonesian tax law. Defined in Article 1 paragraph 2 of Law No. 28/2007 on General Tax Provisions and Procedures (UU KUP). Individual Taxpayers include any person with income above the non-taxable threshold (PTKP) from any source: employment, business, investments, or other sources. Citizenship is not a determining factor; both Indonesian residents and foreign nationals domiciled in Indonesia can be individual taxpayers. Corporate Taxpayers (Wajib Pajak Badan) include all legal entities established or domiciled in Indonesia, such as: Limited Liability Companies (PT), Partnerships (CV), Firms, Cooperatives, Foundations, and other legal entities. Corporations must pay income tax (PPh Badan) on net profits. Core taxpayer obligations: (1) Register and obtain NPWP, (2) Calculate tax liability, (3) Pay taxes on time, (4) File annual returns and supporting documents.
This article is for education, not tax advice.
Example
PT Sejahtera was established in Jakarta in 2020 with capital of Rp 500 million. From the date of establishment, PT Sejahtera automatically became a Corporate Taxpayer (Wajib Pajak Badan). Within 30 days of incorporation, PT Sejahtera must register with the local Tax Service Office (KPP) and obtain an NPWP. Subsequently, PT Sejahtera is obligated to: (1) Calculate corporate income tax on profits, (2) Pay PPh 25 installments monthly, (3) File the corporate annual return by April 30 each year.
Source: Article 1 para. 2 UU KUP (Law No. 28/2007); Article 2 UU KUP
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