Indonesia implements Single Identity Number in Tax Administration

lThe Minister of Finance issued MoF Regulation number 112/PMK.03/2022 (“MOF REG-112”) on Taxpayer Identification Number (“TIN OR TAX-ID”) for individual taxpayers, corporate taxpayers and government agency taxpayers, applicable as of July 8, 2022. Pursuant to the MOF REG-112, there are changes to the Tax-ID format applicable as of July 14, 2022.

New Tax-ID Format

The new format of Tax-ID for taxpayers has been registered as follows:

Transition period

In the transition period, considering that not all administrative services can accommodate the new Tax-ID format, the current format of a 15 digits Tax-ID can still be used until December 31, 2023. The new Tax-ID format will be fully imple-mented as of January 1, 2024. From that date, all administrative services and other services requir-ing a Tax-ID must use the new 16 digits Tax-ID format.

The tax-ID format for new taxpayers is stipulated as follows:

Valid and non-valid NIK

For the Individual taxpayers who is Indonesian Citizen, who has been registered and is having a 15 digits Tax-ID, the NIK can already function as new Tax-ID format. However, the NIK can have the status as a valid or non-valid data.

Once an NIK is stated as “valid”, the taxpayer can automatically use the NIK as new Tax-ID. While in case of a “non-valid” NIK, the NIK cannot be used as a Tax-ID.

In this case, the tax authority will ask for clarification of non-valid NIK through (i) DJP online system, (ii) email; (iii) DGT call center of Kring Pajak or (iv) other channels.

To clarify whether NIK is valid or not, it is advisable for the individual taxpayer to check directly through the DJP online System (www.djponline.pajak.go.id).