SSJK Consulting December 2025 Tax Update: Mass Employee NIK Validation
Directorate General of Taxes Launches Mass Employee Residential Identity Number (NIK) Validation & Registration Portal to Validate the Employee with Temporary Tax ID (999xxx)
The Directorate General of Taxes (”DJP”) has officially released a new feature on Portal NPWP versi 2.1, enabling companies and government institutions to validate and register employee’s Residential Identity Number (NIK) in bulk. The purpose of this feature is to validate employees who are registered under temporary Tax ID (999xxx) and to enable the issuance of proper Withholding Tax Art. 21 Slip. This update supports seamless payroll processing and aligns with the NIK as Single Identity Number for Tax Administration.
Why is Residential Identity Number (NIK) validation important?
- Coretax cannot generate Withholding Tax Slip BPA1/BPA2 if employee’s Residential Identity Number (NIK) is not registered
- Withholding Tax Slip A1/A2 cannot be issued if employers continue using temporary Tax ID (999xxx)
- Once registered, the company must cancel the Withholding Tax Art. 21 Slip that uses the temporary Tax ID (999xxx) and reissue the employee’s Withholding Tax Art. 21 Slip
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SSJK Consulting August 2025 SSJKlopedia: Tax Treatment of Joint Operations (KSO) under PMK No. 79/2024
A Joint Operation is a business collaboration between two or more parties (typically companies) without forming a separate legal entity.
Key Highlights of PMK 79/2024:
Profit-Sharing JO:
- Engages in activities such as delivering goods/services, earning income, and/or incurring expenses in the name of the JO.
- Required to obtain a Tax ID (NPWP) and be registered as a VAT-able Entrepreneur (PKP) if revenue exceeds the small entrepreneur threshold
- Registration is done at the tax office where one of the Indonesian JO members is domiciled.
Revenue-Sharing JO:
Not required to obtain a Tax ID (NPWP) or be registered as a VAT-able Entrepreneur (PKP).
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SSJK Consulting June 2025 SSJKlopedia: New Rules on Tax Sanction Reduction and Cancellation – Highlights from Ministry of Finance Regulation No. 118 Year 2024
The Taxpayer may submit an application to the Tax Office for the reduction or cancellation of administrative sanctions. The Tax Office has the authority to fully approve, partially approve, or reject the application based on the supporting facts and documentation.
Continuing from our SSJKlopedia Edition 14, the Ministry of Finance Regulation No. 118 of 2024 provides further clarification on what constitutes oversight or errors not caused by the taxpayer, including those arising from specific circumstances beyond the taxpayer’s control.
This regulation also introduces new provisions regarding the payment of Tax Assessment Letters, which are now required to meet the formal criteria for submitting a reduction or cancellation request.
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SSJKlopedia: SSJK Payroll May 2025 ꟷ Calculation of Income Tax Art. 21 for Board of Commissioner and Supervisory Board
The Income Tax Art. 21 for Commissioners and Supervisory Boards has different classifications and calculations, depending on whether the income is received regularly or irregularly.
Errors in classification and calculation of Income Tax Art. 21 can result in tax underpayment, penalties for late payment, and affect the Take Home Pay of the respective Commissioners and Supervisory Boards. To facilitate understanding of the calculation of Income Tax Art. 21 for Commissioners and Supervisory Boards, we have created a guide in our SSJKlopedia.
Please download our article on the link below.
SSJKlopedia: SSJK Payroll April 2025 ꟷ Practical Guide to Calculation of Income Tax Art. 21/26 for Expatriates
Calculating Income Tax for Expatriate employees often leads to complexity and confusion. Errors in determining the type and calculation of Income Tax for Expatriates can result in potential tax underpayment and penalties for late payment. To assist with the initial understanding of income tax calculations for Expatriate employees, we have created a practical guide.
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SSJK Consulting Tax Update March 2025: New Tax Audit Regulation MoF-15 Year 2025
The Ministry of Finance has issued new regulation No. MoF-15 year 2025 regarding Tax Audit and revoke the previous regulation, i.e. MoF-17/MoF.03/2013 as last amended with MoF-184/MoF.03/2015 regarding Procedures for Tax Audit. This regulation is effectively applied starting from 14 February 2025.
The MoF-15 Year 2025 regulates several changes on the tax audit process, e.g. type and duration of tax audit, preliminary tax audit findings, response on Formal Notification of Tax Audit Findings (SPHP), etc.
Please download our Tax Update for the above regulation here:
SSJK Consulting Tax Update February 2025: Minister of Finance Regulation No. 11 year 2025 (“PMK-11”) regarding the Other Value for VAT Imposition Base
Since 1 January 2025, the VAT Rate has been increased to 12%. The PMK-11 was issued to affiliate the implementation of the “effective” VAT rate at 11% for the goods and service which is not categorized as luxurious, and can also be applicable particularly for the goods/services which have been using Other Value for VAT Base (“DPP Nilai Lain”) and VAT Rate using a Certain Amount (“Besaran Tertentu”).
Please download our Tax Update for complete information on the link below.
Tax Update SSJK Consulting January 2025 - Finally, Indonesia's 12% VAT Era Begins!
As of 1 January 2025, the Indonesian Government has implemented a 12% VAT as stipulated in the Harmonization Law No. 7 of 2021. However, to accommodate public requests, the Ministry of Finance (MoF) issued Regulation No. 131 of 2024 (“PMK-131”), adjusting the VAT back to 11% for certain taxable goods and/or services.
PMK-131 stipulates that the 12% VAT applies to:
- The import value or selling price of luxury goods, and
- Other Values for non-luxury goods, resulting in a VAT rate adjustment back to 11%.
Please download our Tax Update for complete information on the link below.
Tax Update - Update on Tax Holiday Facility
The Minister of Finance has issued Regulation No. 69 year 2024 ("PMK-69") regarding changes to Regulation No. 130/PMK.010/2010 concerning Corporate Income Tax Reduction Facilities (Tax Holiday). PMK-69 accommodates the implementation of global minimum tax, where Taxpayers who receive Tax Holiday facilities and part of a business group that meets the global minimum tax requirements, can be subject to domestic minimum top-up tax.
Tax Update - CbCR Reporting FY2023
According to the Ministry of Regulation No. 172 year 2023, the constituent entity (Parent Entity or entity member) or taxpayer that has affiliated transactions are required to submit the Country by Country Report (CbCR) Notification. The CbCR Notification consists of domestic taxpayer information and the statement whether the domestic taxpayer is required to submit CbCR or not.
For the taxpayer with fiscal year January – December, the deadline for submission of CbCR Notification FY2023 is 31 December 2024.
The CbCR Notification should be reported to the DGT by using online system (e-filling), and the DGT will provide the electronic receipt as the prove of submission of CbCR Notification. This electronic receipt should be attached in the Corporate Income Tax Return FY2024 which should be submitted at the end of April 2025 at the latest.
In case the CbCR Notification is not reported and/or attached in the Corporate Income Tax Return, the Tax Office may classify the Corporate Income Tax Return is not completed and reported to the Tax Office.