Update: How to register NPWP via CORETAX

How to Create an NPWP and Its Functions, What Is an NPWP?

An NPWP (Taxpayer Identification Number) is an official number issued by the Directorate General of Taxes (DGT) in Indonesia to identify taxpayers. 

It serves as a unique identification for individuals or business entities in fulfilling their tax obligations. 

Every Indonesian citizen who earns income above the non-taxable income threshold is required to have an NPWP.

Functions of the NPWP

The NPWP plays a crucial role in both personal and business financial administration. Below are some of its main functions:

1. Tax Administration
   The NPWP is used for all tax-related activities, including reporting, paying, and filing annual tax returns (SPT). Without an NPWP, taxpayers cannot properly fulfill their tax obligations.

2. Personal Identification in Taxation
   Similar to how a National ID (KTP) identifies a citizen, the NPWP identifies a taxpayer. It helps the government ensure transparency and accuracy in the taxation system.

3. Requirement for Administrative Purposes
   The NPWP is often required when applying for loans, opening a bank account, getting a job, or registering a business. Many institutions use it to verify financial credibility and compliance.

4. Avoiding Higher Tax Rates
   Individuals or companies without an NPWP may be charged a higher tax rate, typically 20% higher than those who have it. Therefore, having an NPWP can help reduce unnecessary tax burdens.

How to Create an NPWP

There are two main ways to apply for an NPWP: online and offline. Both methods are relatively easy and free of charge.

1. Online Registration

You can apply for an NPWP online through the official website of the Directorate General of Taxes

Steps:

1. Visit the website and click “Register.”
2. Create an account using your email address.
3. Log in to your account and fill in the required personal information.
4. Upload digital copies of your supporting documents, such as:
   • KTP (Indonesian ID card) for Indonesian citizens
   • Passport and KITAS/KITAP for foreigners
   • Proof of employment or business license (if applicable)
5. Submit your application.
6. Wait for email confirmation from the tax office. Your NPWP card will be sent to your registered address or can be downloaded digitally.

2. Offline Registration

You can also apply directly at the nearest Tax Service Office (KPP).

Steps:

1. Prepare the required documents (same as for online registration).
2. Visit the KPP that matches your residence or business location.
3. Fill out the NPWP registration form.
4. Submit the form and documents to the officer.
5. Once verified, you’ll receive your NPWP card.

Types of NPWP

1. Personal NPWP
   Issued to individual taxpayers who earn income from employment, business, or independent services.

2. Corporate NPWP
   Issued to companies, organizations, or institutions that earn income and have tax obligations.

Conclusion

Having an NPWP is essential for every Indonesian citizen who earns income. It not only helps ensure compliance with tax regulations but also provides several administrative advantages in daily life. 

With the availability of online registration, obtaining an NPWP has become easier, faster, and more efficient.

By owning an NPWP, you contribute to building a transparent and responsible tax system, supporting national development through proper taxation.

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