NPWP Deregistration Refused: Two Real Cases, a Company and an Individual, in Indonesia
Many people assume that closing a tax number in Indonesia is simple: you stop working or leave the country, file an application, and forget about it. In practice, the tax office refuses, and unfiled reports and fines keep piling up behind the person or the company. Let us look at two real cases: a corporate NPWP and an individual tax number.
Case 1. The Company Looks Closed, but for the Tax Office It Is Still Alive
The story
Dmitry and a partner opened a small agency in Bali: they set up a PT PMA, hired a couple of people, and took on their first clients. A year in, it became clear the idea was not taking off the way they had hoped. They stopped taking new clients, let the team go, and gave up the office. "The company is gone now," Dmitry decided, and along the way filed an application to close the corporate tax number.
The refusal came
It turned out that "to stop working" and "to close the company" are not the same thing. For the state, the PT still existed: no one had formally liquidated it, and the last annual report had never been filed. From the tax office's point of view, it was dealing with a live taxpayer that had simply stopped reporting.
Why it was refused
A corporate tax number cannot be closed until the company has gone through a proper liquidation, with a shareholders' resolution and an official deed, and until all tax matters are settled: the final annual report filed and taxes paid. Dmitry had none of this. The agency had simply gone quiet, while on paper everything stayed as it was.
What happens if you let it slide
As long as the corporate number is active, the company must keep filing reports, both monthly and annual, even if it has not earned a single rupiah. Every missed deadline accrues fines. A "dormant" PT quietly builds up debt, and it surfaces at the worst possible moment: when the owner decides to return to Indonesia or open a new company.
How it is done properly
We broke the task down in order: first we legally liquidated the company, then we closed the tax obligations, filed the outstanding reports and paid off the debts, and only after that applied to remove the corporate NPWP. Done in this order, everything went through.
The takeaway is simple: closing a company is not "stopping work" but a full procedure. Until there is a liquidation and a tax clean-up, the PT is alive in the eyes of the state and keeps creating obligations.
Case 2. Left Bali, but the Individual Tax Number Stayed
The story
Karolina lived in Bali for three years: she worked at a local company on a work KITAS and obtained an individual tax number. At some point she decided to leave for good, closed her KITAS, and packed her things. Just before her flight, she thought, "I will close the tax number too, so there are no loose ends." She filed an application and was refused.
You would think that if a person is leaving, why keep them on the books? But the tax office has its own logic.
Why it was refused
Karolina had an unfiled individual annual report for the last year, and in the system she was still listed as an income recipient. On top of that, to close an individual number, the tax office wants to see proof of permanent departure from the country. As long as these matters are open, the number stays with the person.
What happens if you let it slide
Formally, Karolina would remain an Indonesian taxpayer, obliged to report even while living thousands of kilometers away. And if she ever decides to come back, a new contract, a visa, or her own business, the first thing to surface will be the missed reports and accumulated fines.
How it is done properly
The order is the same as with the company, only for an individual: we filed the last personal report, attached the document confirming permanent departure, and submitted the application again. This time the number was closed.
The takeaway: an individual tax number, like a company, cannot simply be "left behind." Leaving does not yet mean you have settled matters with the tax office.
How to Close a Tax Number Without a Refusal
For both a company and an individual, the order is the same: first close all open matters (liquidation, reporting, taxes, proof of departure), and only then apply to remove the NPWP. We handle both scenarios: liquidating a PT and closing its corporate number, and closing an individual tax number when leaving the country.
Planning to close a company or leave Bali for good? Contact us: we will review your tax obligations and close the number properly, without refusals or accumulated fines.
Director of Legal Indonesia
Patrecia Christy
