Registration Requirements and Mechanisms for NPWP for Entities and Individuals 

The Tax Identification Number (NPWP) is a mandatory identity for Indonesian residents with income. NPWP is essential for citizens to pay income tax earned in Indonesia. 

Previously, the NPWP registration process required a visit to the nearest Tax Office (KPP), posing challenges due to its lengthiness. Now, the NPWP registration can be completed online through a smartphone without the need to visit the nearest KPP. However, there are several prerequisites to be fulfilled before registering for NPWP online. 

But first, what is NPWP?

There are two types of NPWP: Individual and Entity, each with different registration requirements. So, what are the prerequisites for registering for the Tax Identification Number (NPWP)? And what are the available channels for NPWP registration? Let’s explore the following information! 

Prerequisites for Individual Tax Identification Number ( NPWP ) Registration  

The requirements for an Individual Tax Identification Number (NPWP) registration are not extensive. However, essential documents must be prepared beforehand. Individuals can register to obtain an NPWP by completing the online registration form available on the official Directorate General of Taxes (DJP) website, www.pajak.go.id, and uploading the required documents. 

There are four categories for Individual Tax Identification Number registration, including: 

• Individuals engaged in business activities or freelance work, as well as those not engaged in such activities, like employees, entrepreneurs, traders, freelancers, etc. 
• Individuals not meeting subjective or objective tax law requirements but intending to register for NPWP, such as students or job applicants without income. 
• Every individual with an existing NPWP who earns income from business or freelance work at one or more different business locations. 
• Undivided inheritance. In this case, individuals inherit an undivided estate without an NPWP who earns income from the estate. 

After identifying the category, you need to ensure the documents required for Tax Identification Number registration for different professional fields. 

Business Activity/Freelancer: 

Indonesian citizens need a photocopy of their Identity Card (KTP), while Foreign Citizens need a photocopy of their passport, Kartu Izin Tinggal Sementara (KITAS), or Kartu Izin Tinggal Tetap (KITAP). 

Subjective/Objective Requirement Fulfillment: 

• A copy of the Identity Card (KTP). 
• Business or Freelance Activity at Different Locations: 
• Copy of NPWP. 
• Undivided Inheritance: 
• Photocopy of the death certificate or similar documents. 
• Document establishing the representative’s position for Undivided Inheritance Taxpayer, including: 
• In case an heir represents the undivided inheritance, a copy of their NPWP. 
• If represented by the executor of the will, a copy of the will or similar documents, plus the executor’s NPWP. 
• If represented by the party handling the estate, a copy of the document appointing the representative and their NPWP. 

Requirements for Entity Tax Identification Number Registration 

The requirements for obtaining a Tax Identification Number for Entities differ based on the type of business entity. The various types of business entities and examples include: 

• For-profit entities, such as PT (limited liability company), Firma, CV (partnership), Banks, Financial Service Companies, Cooperatives, etc. 
• Non-profit entities, including Foundations, Religious Institutions, Private Schools, Private Universities, NGOs, etc. 
• Joint Operation entities like Construction Company Joint Operations. 
• Branches like Bank ABC Branch Jakarta, PT XYZ Branch Bandung, etc. 

After determining the category, here are the documents required for Entity Tax Identification Number registration: 

For-profit and Non-profit Entities: 

• Document proving the establishment of the entity, such as the Articles of Association or equivalent document for local entities and an appointment letter from the head office for foreign company branches. 
• Identity documents of all entity officials: 
• For Indonesian citizens: a photocopy of NPWP. 
• For Foreign citizens: a photocopy of their passport and NPWP if already registered as a taxpayer. 

Joint Operation Entities: 

• Copy of the cooperation agreement or the establishment act. 
• NPWP copies of each member. 

Branch Entities: 

• Copies of the central and parent NPWP. 
• Identity documents of the branch’s leaders or responsible personnel: 
• For Indonesian citizens: a photocopy of NPWP.
• For Foreign citizens: a photocopy of their passport and NPWP if already registered as a taxpayer. 

Registration Mechanisms for Taxpayers  

Apart from prerequisites, the registration mechanism is essential for anyone intending to register as a taxpayer. Taxpayer registration is divided into two mechanisms: direct and online. Here’s a detailed explanation: 

Offline Registration: Offline or direct NPWP registration can be done by visiting the Tax Office (KPP). Required documents must be brought along. There are two methods for direct registration: 

Through the Tax Office (KPP): 

• Visit the nearest KPP with the necessary documents. Things to note include: 
• For different addresses than in the ID, provide a residency certificate from the neighbourhood. 
• Required documents are photocopied, filled out and signed the taxpayer registration form correctly and completely, which will be provided by the registration officer at the KPP. 
• Submit all registration documents to the registration officer. A receipt will be given indicating that the taxpayer registration process has been completed to obtain the NPWP. 
• The NPWP card will be sent to the registered address via registered mail. 

Online Registration: 

• Visit the official DJP e-registration website or DJP Online ereg.pajak.go.id/daftar or pajak.go.id and click “register” (if you don’t have an account). 
• Enter an active email address, which will be used in the NPWP registration form. 
• Enter the Captcha code. 
• Log in to the registered email address and click the email verification link, which redirects you back to the online NPWP registration page. 
• Fill in the taxpayer type (Individual or Entity). 
• Complete personal information, including name as per the ID, and email address (if not provided), create and confirm a password, and enter an active phone number. 
• Select a security question and provide an answer known only to you. 
• Enter the Captcha code and click “Register.” 

For registration in DJP online after creating an account at ereg.pajak.go.id/daftar: 

• Check the email and open the account activation email, by clicking the activation link. 
• Log in again using the registered email and password. 
• Fill in the form according to the taxpayer category, either an individual or entity. 
• Then choose “centre” for unmarried individuals or “branch” for married females. 
• Enter the requirements, as previously explained. 
• Fill in the Taxpayer Identity form, including name, title, birthplace/date, marital status, nationality, phone number, and email address accurately and completely. 
• Complete the Primary Source of Income form, detailing employment, business activities, or freelance work. 
• Fill in the Residential Address (ID) form and the Business Address if the income is from a business (if not, this form is not necessary). 
• Provide Additional Information such as the number of dependents and monthly income range. 
• Upload the latest ID in image or PDF format, a maximum of 2 MB per file. 
• Complete the declaration form. 
• Your NPWP registration status will appear; click “send token.” 
• Copy the token number sent to your email address. 
• Click “send application.” 

If the NPWP card is not delivered within a reasonable time after registering online, it might be deemed invalid due to unmet requirements. Consult with a trusted Tax consultant to understand the best way to ensure your tax ID application can be successfully processed.

Registration Period  

In reality, taxpayer registration only takes one business day. The KPP will issue a BPS or an electronic notice of incompleteness within one business day of receiving the registration form and documents. The completion and issuance of the NPWP service will also be done within one business day after the BPS is issued. 

Get Your Free Consultation Now with Tax-Indo! 

Ready to navigate Indonesian taxation with ease? Contact Tax-Indo today for a free consultation and experience expert guidance through your NPWP registration journey. Simplify the complexities of tax compliance in Indonesia and embark on a hassle-free process with Tax-Indo by your side.