Parties Whose Taxpayer Identification Numbers May Be Deregistered 

JAKARTA, DDTCNews – The tax office may deregister Taxpayer Identification Numbers for taxpayers that no longer fulfil the subjective and/or objective requirements as taxpayers.

Taxpayer Identification Numbers are deregistered pursuant to statutory tax provisions, based on application or ex officio. This is regulated in detail through the Director General of Taxes Regulation PER-04/PJ/2020.

“The Head of the Tax Office may deregister Taxpayer Identification Numbers for Taxpayers that no longer fulfil the requirements ...,” reads Article 34 of PER-04/PJ/2020, quoted on Saturday (18/2/2023).

There are at least 13 conditions that render a taxpayer’s Taxpayer Identification Numbers deregistered. First, an individual taxpayer who has passed away and left no inheritance.

Second, an individual taxpayer who has left Indonesia permanently. Third, an individual Taxpayer constituting the manager, commissioner, shareholder or owner and employee who has been given a Taxpayer Identification Number and his/her net income does not exceed the Personal Tax Relief.

Fourth, a woman who previously had a Taxpayer Identification Number and married without entering into a prenuptial agreement on the separation of assets and income and does not wish to separately exercise her tax rights and fulfill her tax obligations from her husband

Fifth, a married woman with a different Taxpayer Identification Number from her husband’s Taxpayer Identification Number and joint exercise of tax rights and fulfillment of tax obligations with her husband.

Sixth, a child who is not yet 18 years old and has never been married, already has a Taxpayer Identification Number.

Seventh, undivided inheritance taxpayers if the inheritance has been divided.

Eighth, branch taxpayers no longer conduct business or whose places of business are closed or transferred to the working area of another Tax Office.

Ninth, corporate taxpayers that are liquidated or dissolved due to termination or business merger.

Tenth, permanent establishment taxpayers have terminated their businesses in Indonesia.

Eleventh, government agencies that no longer fulfil the requirements as withholding agents pursuant to statutory tax provisions and are liquidated due to several conditions.

The abovementioned conditions include no longer operating as government agencies, the dissolution of government agencies due to a merger of government agencies, not receiving a budget allocation in the following year or no longer operating due to other causes.

Twelfth, a taxpayer that has more than 1 Taxpayer Identification Number, excluding branch Taxpayer Identification Number.

Thirteenth, a Taxpayer with a Branch Taxpayer Identification Number that, in reality, no longer has rights and/or obtains benefits over the land and/or owns, controls and/or obtains benefits over the building, in respect of taxable objects of Land and Building Tax referred to in Article 4 paragraph (1) of PER/04/PJ/2020. (sap)