Summary
NPWP (Nomor Pokok Wajib Pajak) is Indonesia's taxpayer identification number. Every individual with income above the non-taxable threshold (PTKP) is required by law to register for an NPWP. Since 2024, NPWP has been integrated with the National Identity Number (NIK) for individuals, simplifying registration. This guide explains who must register, how to register, and what NPWP is used for.
Who Must Have an NPWP
Under Article 2 of KUP Law (UU No. 28 Tahun 2007 as amended by UU HPP), the following individuals are required to register for an NPWP:
- Employees and workers earning above the annual PTKP threshold (IDR 54,000,000 for single individuals).
- Self-employed professionals — doctors, lawyers, consultants, freelancers — with any level of professional income.
- Business owners — sole traders, MSME operators, e-commerce sellers — with any business income.
- Investors receiving dividends, interest, or capital gains.
- Foreign nationals residing in Indonesia for more than 183 days in a 12-month period.
Even if your income is below PTKP (so no tax is owed), NPWP may be required for practical purposes: bank accounts, property transactions, business licenses, government procurement, and visa applications.
Key Regulations
- UU No. 28 Tahun 2007 (UU KUP) — Article 2: NPWP registration obligation.
- UU No. 7 Tahun 2021 (UU HPP) — NIK-NPWP integration; Article 2 paragraph (1a).
- PMK No. 112/PMK.03/2022 — Technical rules for NIK-as-NPWP implementation.
- PER-04/PJ/2020 — Updated NPWP registration procedures.
- SE-44/PJ/2022 — DGT Circular on NIK-NPWP phased implementation timeline.
NIK as NPWP: The 2024 Integration
Since January 1, 2024, NIK (National Identity Number / KTP number) functions as NPWP for individual taxpayers (PMK 112/2022). This means:
- Indonesian citizens who activate their NIK in the DGT system automatically receive NPWP status.
- The NPWP format changed from 15 digits to 16 digits (matching NIK).
- Old 15-digit NPWPs are still valid but are being phased out.
Activation steps for NIK-NPWP:
- Visit DJP Online (djponline.pajak.go.id).
- Select "Aktivasi NIK sebagai NPWP".
- Enter NIK, email, and phone number.
- Verify via OTP sent to phone.
- Complete profile — confirm address, taxpayer status, employer.
No physical visit to KPP is required for most individuals.
Registering as a New NPWP (Without NIK Activation)
Foreign nationals and individuals without NIK must register at the local KPP (Tax Office) by submitting:
- Employees: Photocopy of KTP (or passport for foreigners) + employer's domicile certificate.
- Self-employed/business: KTP/passport + business location proof + statement of business activity.
- Foreign nationals: Valid passport + KITAS/ITAS + employment letter or residency proof.
Processing time: same day to 1 business day. NPWP card and certificate are issued.
What NPWP Is Used For
Beyond tax filing, NPWP is required for:
| Purpose | Requirement |
|---|---|
| Opening a bank account | Required for accounts above certain thresholds |
| Property purchase / KPR mortgage | Required by notary and bank |
| Land and building tax (PBB) | Linked to NPWP |
| Government procurement / vendor registration | Mandatory |
| Business license (NIB/OSS) | Linked via NIK-NPWP |
| Passport application | May be required |
| SPT filing | Mandatory |
| Withholding tax (Bukti Potong) issuance | Employer needs employee NPWP |
After Registration: Key Obligations
Once registered, the taxpayer must:
- File SPT Tahunan (Annual Tax Return) — by March 31 for individuals (SPT 1770 or 1770 S or 1770 SS depending on income complexity).
- Report changes — address, marital status, employer changes — within 1 month of change.
- File even in zero-income years — a nil return (SPT Nihil) must still be submitted.
Failure to file SPT results in penalties: IDR 100,000 for individuals per late SPT (KUP Article 7).
SPT Form Selection Guide
| Income Type | SPT Form |
|---|---|
| Employees with one employer, no other income | SPT 1770 SS (simple) |
| Employees with multiple income sources or deductions | SPT 1770 S (standard) |
| Self-employed, freelancer, business owner, investor | SPT 1770 (full) |
All forms are filed via DJP Online or third-party e-Filing providers (e.g., OnlinePajak, Klikpajak).
NPWP Deletion and Deactivation
An NPWP can be deleted (dihapus) when:
- The taxpayer is deceased and has no estate.
- The taxpayer permanently moves abroad and is no longer an Indonesian tax resident.
- A company is liquidated.
Deactivation (non-aktif) is available for taxpayers who temporarily have no income (e.g., retirees below PTKP). Contact KPP to request NPWP deactivation. A deactivated NPWP still exists in the system but the taxpayer is not required to file SPT during the inactive period.
Penalties for Not Having NPWP
Individuals who should have registered but did not face:
- Higher withholding rates: PPh 21 withholding increases by 20% above the normal rate for employees without NPWP (Article 21(5a) UU PPh).
- PPh 22 withholding increases by 100% for importers without NPWP.
- Administrative penalties for failure to register (KUP Article 39).