Indonesia expands number of tax administration services accessible via ID numbers
In line with Indonesia’s synchronization of Taxpayer Identification Numbers (NPWPs) and Individual Identification Numbers (NIKs), the Directorate General of Taxation has issued several announcements expanding the list of tax administration services that can use 16-digit NPWPs, NIKs and Place of Business Identification Numbers (NITKUs) or a 15-digit Tax ID. However, the 15-digit Tax ID can only be used until December 2024.
According to these announcements (PENG-18 on July 12, 2024, PENG-23 on July 19, 2024, and PENG-24 on August 2, 2024), users can now access 37 types of administrative tax services through the portal using these references (16-digit NPWP, NIK, NITKU, or 15-digit NPWP). These services include e-registration, e-bupot, e-filing, e-objection, and e-invoicing.
Updates on tax treaties between Indonesia and several countries
The Directorate General of Taxation has issued circulars to announce updates to certain articles in tax treaties between Indonesia and the following countries: Mexico, Bulgaria, Romania, South Africa and Hong Kong.
The main points of the updates include:
-
A reduced tax rate on dividends (12.5% for Romania and 10% for South Africa) can now only be granted if the 25% ownership requirement is met for at least 365 days immediately preceding the dividend payment date;
-
Under the tax treaties with Mexico, Bulgaria and South Africa, the other country can now tax gains from the transfer of shares or similar rights, such as interests in partnerships or trusts, only if immovable property in that other country directly or indirectly accounts for more than 50% of their value within 365 days immediately preceding the transfer; and
-
In the case of the tax treaties with Bulgaria, Romania and South Africa, requests for a mutual agreement procedure must now be submitted within three years from the date of the first notification of the measure resulting in the imposition of a tax that is not in accordance with the provisions of a tax treaty with Indonesia.
Please contact GNV Consulting For further details on the above mentioned changes in tax numbers, a list of tax administration services with their internet portals/links or further information on the above mentioned agreements and their relevance to your case, please contact our member’s office at your disposal.
