The Director General of Taxes has issued a circular concerning the follow-up to the deregistration of taxpayer identification number (TIN) (Nomor Pokok Wajib Pajak/NPWP) and Value Added Tax (VAT) for government treasurers. The policy is outlined in Circular No. SE-47/PJ/2021 concerning the Follow-up to Taxpayer Identification Number Deregistration and/or VAT Deregistration of Treasurer Taxable Persons for VAT Purposes by the Tax Office (SE-47/2021).
This regulation constitutes an implementing regulation of the Minister of Finance Regulation No. 231/PMK.03/2019 concerning Procedures for Taxpayer Identification Numbers Registration and Deregistration, Value Added Tax Registration and Deregistration, and Withholding and/or Collection, Remittance, and Filing of Taxes for Government Agencies (MoF Reg. 231/2019).
This Circular has been issued to provide guidelines for the follow-up to TIN deregistration and/or VAT deregistration for treasurer Taxable Persons for VAT Purposes (Pengusaha Kena Pajak/PKP) by the Tax Office (Kantor Pelayanan Pajak/KPP). On another note, this policy aims to provide clarity and uniformity for KPP in following up on ex officio TIN deregistration and/or VAT deregistration for treasurer Taxable Persons for VAT Purposes by the Director General of Taxes as per MoF Reg. 231/2019.
SE-47/2021 stipulates that TIN issuance and/or VAT registration for government agencies PKP are carried out ex officio for central government agencies, local government agencies, and village government agencies. Upon TIN issuance and/or VAT registration, treasurer PKP shall be subject to TIN deregistration and/or VAT deregistration.
TIN of treasurers shall be deregistered by referring to the taxpayer master file database (Master File Wajib Pajak/MFWP) pursuant to the following three criteria:
having a treasurer business classification (Kelompok Lapangan Usaha/KLU) as per the Director General of Taxes’ decision which stipulates the taxpayer’s KLU;
the taxpayer’s name contains the word treasurer or other words indicating the status as a treasurer taxpayer; or
taxpayers that should not otherwise be included in the treasurer category in the MFWP database.
In the event that a treasurer subject to TIN deregistration is of the PKP status in the MFWP database, VAT deregistration shall be carried out concurrently with the TIN deregistration of the treasurer. TIN deregistration and/or VAT deregistration for treasurer PKP shall be carried out by issuing a Director General of Taxes’ decision.
Next, the Director General of Taxes performs ex officio TIN deregistration and/or VAT deregistration for treasurer PKP from the Director General of Taxes’ administration as of 1 September 2021. After TIN deregistration and/or VAT deregistration, KPP must conduct the following three things as a follow-up process.
First, submitting a notification letter of TIN deregistration and/or VAT deregistration of treasurer PKP to the government treasurer by post, a forwarder or courier service company, email, or other electronic media. Second, temporarily activating the treasurer’s TIN in the event of rights and/or obligations that have not been exercised for the August 2021 taxable period and before the August 2021 taxable period.
Third, conducting socialization to government agencies related to the exercise of tax rights and fulfillment of obligations of government agencies, including the implementing guidelines for the granting and use of identification numbers for subunit organizations of government agencies. This circular was enacted on 1 September 2021.