Can Taxpayers Deactivate or Revoke NPWP?

The Taxpayer Identification Number (NPWP) is crucial for fulfilling tax obligations in Indonesia. But what happens when a taxpayer no longer needs it? Can it be deactivated or revoked? The answer is yes — under certain conditions.

When Can NPWP Be Deactivated?

Deactivation is possible if the taxpayer meets specific criteria, such as:

• Individuals: When they pass away and their tax obligations are settled.

• Employees: If they no longer earn taxable income (for example, early retirement without starting a new business).

• Businesses: When a company is permanently closed or liquidated.

In each case, the taxpayer must provide proper documentation to the tax office to support the deactivation request.

How to Deactivate an NPWP

Here’s the process:

1. Submit an Application
   You must apply to the tax office where your NPWP is registered. This can be done online via the DGT (Directorate General of Taxes) system or directly at the office.

2. Provide Supporting Documents
   The documents usually include a death certificate (for deceased individuals), a letter of employment termination, or a company liquidation certificate.

3. Tax Office Review
   The tax office will review the application. They might audit your final tax obligations to ensure everything is settled.

4. Deactivation Decision
   If approved, the NPWP will be officially deactivated, and you’ll receive a notification.

Can an NPWP Be Reactivated?

Yes. If a taxpayer resumes activities that require an NPWP — like starting a new job or business — they can reactivate it by applying to the tax office.

Why Is Proper Deactivation Important?

An active NPWP comes with responsibilities. Even if you’re no longer earning taxable income, the government assumes you still need to file annual tax returns. Failing to file can result in penalties. Deactivating the NPWP legally protects you from unnecessary obligations and fines.

Final Thoughts

Deactivating or revoking an NPWP isn’t complicated, but it needs to be done properly. If your circumstances change, make sure you communicate with the tax office and follow the correct process. It saves you from future headaches and keeps your tax record clean.