The use of personal Identity Number (NIK) as a Personal Tax Identification Number (NPWP)

In accordance with the Regulation of the Minister of Finance No. 112/PMK.03/2022 concerning Taxpayer Identification Number for Individual Taxpayers, Corporate Taxpayers and Government Agency Taxpayers, Article 2, Effective as of July 14, 2022:

  1. Individual Taxpayers who are Residents use the Identification Number, and
  2. Non-resident individual taxpayers, corporate taxpayers, and government agency taxpayers shall use a Taxpayer Identification Number in a 16 (sixteen) digit format, as the Taxpayer Identification Number.

The integration of the population database with the tax administration system aims to make it easier for individual taxpayers to fulfill their tax rights and obligations for the sake of administrative simplicity and the national interest.

The use of NIK as NPWP does not cause any individual to pay taxes. Tax payments are made if:

  1. Annual income above the PTKP limit; or
  2. Gross turnover above IDR 500 million/year for entrepreneurs who pay 0.5% Final income Tax (PP-23/2018).

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