Can Taxpayers Deactivate or Revoke NPWP?

Can Taxpayers Deactivate or Revoke NPWP?

The Nomor Pokok Wajib Pajak (NPWP) or Taxpayer Identification Number is a crucial document for individuals and businesses in Indonesia. It serves as an official identification for tax purposes, allowing the government to track and manage tax obligations effectively. But what happens if a taxpayer no longer needs their NPWP? Is it possible to deactivate or revoke it? Let’s delve into the details.

Understanding NPWP Deactivation and Revocation

Deactivation or revocation of an NPWP is indeed possible under specific conditions set by the Directorate General of Taxes (DGT). The process is typically referred to as NPWP Deregistration. This procedure helps taxpayers who no longer meet the criteria for tax obligations to formally end their tax responsibilities.

Who Can Apply for NPWP Deactivation?

1. Individuals:
   • Deceased Taxpayers: The NPWP can be deactivated upon the taxpayer’s death, with family members or heirs submitting the necessary documents.
   • No Longer Earning Income: Individuals who have permanently stopped earning taxable income, such as retirees without pensions, may apply.
2. Businesses:
   • Business Closure: Companies that have ceased operations permanently can request NPWP deregistration.
   • Merger or Consolidation: If a business merges with another entity, the NPWP of the dissolved entity can be revoked.

Steps to Deactivate or Revoke an NPWP

1. Prepare the Required Documents:
   • Personal ID (KTP or Passport)
   • Death certificate (if applicable)
   • Business dissolution documents (for companies)
   • Statement explaining the reason for deregistration
2. Submit an Application:
   • Visit the nearest Tax Office (Kantor Pajak) or apply through the DGT’s online system (DJP Online).
   • Fill out the NPWP deregistration form accurately.
3. Review Process:
   • The Tax Office will review the application and may request additional information.
   • An audit might be conducted to ensure there are no outstanding tax obligations.
4. Approval or Rejection:
   • If approved, the taxpayer will receive an official notification confirming the NPWP deactivation.
   • If rejected, the Tax Office will provide reasons and possible corrective actions.

Important Considerations

• Outstanding Tax Obligations: Deregistration will not be approved if there are unpaid taxes or ongoing tax audits.
• Voluntary vs. Involuntary Deregistration: While taxpayers can apply voluntarily, the DGT can also deactivate NPWPs if they find that the taxpayer no longer meets tax obligations.
• Record Keeping: Even after deregistration, it’s advisable to keep copies of all related documents for future reference.

Conclusion

Yes, taxpayers can deactivate or revoke their NPWP under specific conditions. Whether due to personal circumstances like retirement or business-related reasons such as closure, the process is straightforward but requires proper documentation and compliance with tax regulations. For personalized guidance, consulting a tax professional or visiting the nearest Tax Office can ensure a smooth deregistration process