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National Tax Census - What it Means For You

Indonesia

Indonesia's national budget is highly dependent on tax receipts (70%), but the public's awareness of the importance of paying taxes is still very low. Since the implementation of the Sunset Policy back in 2008, the government was able to encourage people to register for a Taxpayer Identification Number. So far this has not been effective enough to encourage them to pay taxes and report their tax objects. Based on the Directorate General of Taxes' data as of September 2011, only 8.5 million people (7.73% out of the 240 million total population) filed their annual income tax return in 2010. Of the 12.9 million active businesses and 22.6 million total enterprises, only 466,000 enterprises (3.6%) paid their taxes last year. Taxand Indonesia considers the objectives and of the Tax Census and documentation required by taxpayers in order to participate in the census.

National Tax Census Objective
The objective of the National Tax Census, which was officially launched on 30 September 2011, is to maximise the full potential of taxation with regards to:

  • Having all eligible taxpayers to be registered
  • Having all tax objects to be taxed
  • Ensure the implementation of tax obligations are made on time and in the correct amount in accordance with the existing regulations.

National Tax Census Targets
Taxable individuals and companies located in business centers, high rise buildings, and residential areas.

Information and documents required in the National Tax Census:

A. For individual respondents
a. Information being required in filling out the Tax Census Form:
1. Taxpayer's identity
2. Status of residence or business place
3. Dependents
4. Income
5. Number of employees (for entrepreneurs)

b. Documents Required:
1. Taxpayer Identification Number (NPWP)
2. VAT-liable Enterprise Registration (if any)
3. Identity Card (KTP)/Passport/Limited Stay Permit
4. Land and Building Identification Number
5. National electric company (PLN) Customer Number.

B. For corporate respondents
a. Information being required in filling out the Tax Census Form:
1. Taxpayer's identity
2. Management
3. Ownership
4. Type of business
5. Number of employees
6. Equipment
7. Books and Financial Statements
8. Corporation's status
9. Tax object's identity

b. Documents Required:
1. Taxpayer Identification Number (NPWP)
2. VAT-liable Enterprise Registration (if any)
3. Articles of Association
4. Identity Card (KTP)/Passport/Limited Stay Permit for management
5. Land and Building Identification Number
6. National electric company (PLN) Customer Number

Taxand's Take


It is imperative for expatriates and multinational companies whose offices are located in business centres, high-rise buildings and residential areas to be aware of the national tax census and to prepare the required information and documents ahead of time.

Your Taxand contacts for further queries are:
Suryohadi Djulianto
T. + 62 021 835 6363
E. suryohadi@pbtaxand.com

Prijohandojo Kristanto
T. + 62 021 835 6379
E. prijohandojo@pbtaxand.com

Taxand's Take Author