Registration of tax identification number (NPWP) and electronic filing identification number (EFIN)

To ensure compliance with tax obligations and accurately submit your company’s tax reports, you’ll need to obtain NPWP and EFIN registration numbers.

These numbers, represented as strings of digits like 01233456789, are issued by the Tax Office of the Ministry of Finance in Indonesia.

The NPWP is essential for tax accounting purposes, while the EFIN number is required for electronic submission of tax reports.

Securing these identification numbers simplifies all tax-related aspects of managing your finances.

1. NPWP

NPWP (Nomor Pokok Wajib Pajak) is a unique identification number assigned to individuals or entities registered as taxpayers in Indonesia. It facilitates easy tax accounting and identification when fulfilling tax obligations.

The NPWP tax number is mandatory for individuals earning income above the regional minimum wage threshold, known as the Tax-Exempt Income Threshold (Penghasilan Tidak Kena Pajak). Once a taxpayer’s income exceeds this threshold for a particular month, they must apply for an NPWP within the following month.

This requirement also extends to married women who are financially dependent on their husbands, ensuring comprehensive tax compliance across different income brackets.

Having an NPWP is advantageous as it grants access to a range of tax benefit programs.

Tax rates for NPWP holders are as follows:

Income up to 60 million IDR is taxed at a rate of 5%.
Income exceeding 60 million IDR is taxed at a rate of 15%.
Income exceeding 250 million to 500 million IDR is taxed at a rate of 25%.

2. EFIN

EFIN (Elektronik Filing Identifikasi Nomor) is a unique identification number assigned to registered taxpayers for electronic tax report submission.

EFIN is used to access the online tax service system and submit annual tax returns (SPT Tahunan) without the need to queue at the tax office.

To obtain an EFIN number, you must call either the Kring Pajak hotline at 1500200 or the official phone number of the Tax Administration (KPP). However, please be aware that these lines are typically difficult to get through.

The EFIN number is issued simultaneously during NPWP registration.The registration typically takes a few working days.

Upon receiving your EFIN, you must activate it within 30 days.

The EFIN number remains valid for life, so it’s essential for taxpayers to keep it accessible. In case of loss or misplacement, it’s crucial to promptly notify the tax authorities. You can do so by:

Navigating the intricacies of taxation can feel overwhelming, and dealing with the process of obtaining NPWP or EFIN numbers might seem like an added burden.

But worry not! At Legal Indonesia, we’re dedicated to simplifying this process for you. Our expert team is always on standby to assist you in obtaining both NPWP and EFIN numbers, ensuring you have all the necessary documentation without any hassle. Let us take the burden off your shoulders and provide you with peace of mind regarding your tax obligations.