Starting on 1 January 2024, the Branch Taxpayer Identification Number (NPWP Cabang) will be abolished, and according to Minister of Finance Regulation No. 112/PMK.03/2022 regarding NPWP for Individual Taxpayers, Corporate Taxpayers, and Government Institution Taxpayers (PMK 112/2022), the Branch NPWP will be replaced by the Identification Number of Business Activity (Nomor Identitas Tempat Kegiatan Usaha or NITKU).
The Directorate General of Taxes states that the Branch NPWP will remain valid until 31 December 2023, and starting on 1 January 2024, the authority will issue the Identification Number of Business Activity. The Identification Number of Business Activity consists of 22 digits, comprising 16 digits of the Main Taxpayer Identification Number and 6 digits representing the serial number corresponding to the number of branches owned by the taxpayer.
Starting on 1 January 2024, the Branch NPWP in Indonesia will be replaced by the NITKU as an administrative tool, which assigned to each place of business activity can be accessed on the Online Directorate General of Taxes. The Identification Number of Business Activity generated by the Directorate General of Taxes system will be used in collaboration with other parties, including the Directorate General of Customs and Excise.
Until 31 December 2023, business branches with an existing Branch NPWP will be automatically assigned the NITKU. After 1 January 2024, business branches without a Branch NPWP can obtain an NITKU by updating their taxpayer data. If the data for the business branch remains unchanged and the Directorate General of Taxes obtains information about the branch office, the data update will be done automatically and the NITKU will be issued.
The Identification Number of Business Activity will be assigned to each taxpayer's place of business activity and used in conjunction with other parties whose systems are connected to the Directorate General of Taxes system. One example of its application is that the Identification Number of Business Activity must be included in the preparation of tax invoices by the taxpayer's business branch. It is expected that the implementation of the NITKU will enhance the effectiveness and efficiency of the tax administration process.
If you, as a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author: Dewi Susanti