The government continues to socialize the new policy of using ID Number to become Taxpayer Identification Number (TIN). This policy will be effectively used in the administration services of the Directorate General of Taxes (DGT) on January 1, 2024.
In recent weeks, public has been educated on the contents of Minister of Finance Regulation Number 112/PMK.03/2022, a provision for implementing ID Number to become TIN. Some are carried out via Instagram live broadcasts in order to reach a larger audience.
This is understandable given that the ID Number is a number owned by all Indonesian residents, so the provisions on the use of the ID Number as TIN will affect all Indonesian residents' tax obligations.
According to Article 2 paragraph (1) of Minister of Finance Regulation Number 112/PMK.03/2022, the use of ID Number as TIN applies to individuals who are residents of Indonesia as of July 14, 2022. ID Number ("Nomor Induk Kependudukan" or NIK) is defined in this provision as a Resident identity number that is unique or distinctive, single, and attached to a person who is registered as an Indonesian Resident.
Furthermore, according to Article 13 of Government Regulation Number 40 of 2019, ID Numbers are issued to each resident by the Regency/City Population and Civil Registration Office ("Dinas Kependudukan dan Pencatatan Sipil" or Disdukcapil) after recording the resident biodata as the basis for issuing Family Card at the Disdukcapil region office where Indonesian Citizens are domiciled. The ID Number is even set to be the basis for the issuance of TIN under Article 13 paragraph (2) of Law Number 23 of 2006.
Every resident is required to have an ID Number. As a result, a baby whose resident biodata has been recorded as the basis for issuing a Family Card will have an ID Number, which also serves as a TIN. Actually, this provision is not new, as Article 2A paragraph (1) of the Income Tax Law states that an individual's subjective tax liability begins at birth.
However, even if the subjective requirements are met, the obligation to pay taxes does not always appear. A taxpayer must meet objective requirements in order to be taxed. For example, income tax will be imposed on taxpayers who already have income and whose income exceeds non-taxable income.
Thus, the baby has met the subjective requirements, but no tax is due because the baby did not receive income as defined in Article 4 of the Income Tax Law.
The important point to emphasize is that the use of an ID number as a TIN is a means of tax administration. Tax obligations return to the respective material laws.
