Tax ID Registration and Treatment of new Individual Companies

Following the introduction of the new type of company brought by the Omnibus Law, i.e. Individual Company, on 7 July 2022 the DGT issued Circular Letter number SE-20/PJ/2022 regarding the Registration for Taxpayer ID Number and the Imposition of Income Tax for Individual Companies (“SE-20”). Some salient points taken from SE-20 are as follows:

  • An individual company is considered as a corporate taxpayer. It should register to obtain TIN by submitting an application electronically or in writing, accompanied by the following required documents:
    1. Copy of the business entity’s establishment document in the form of a deed of establishment or   incorporation document and its amendments, specifically an electronic registration certificate issued    by the Ministry of Law and Human Rights; and
    2. Documents outlining the identities of all board members, i.e. copies of TIN cards, of the individual company.
  • The TIN application is submitted electronically through the page, or the page (if the TIN application is not successful through the   page).
  • Considering their corporate taxpayer status, Individual Companies are not categorized as taxpayers that are exempted from income tax for their gross turnover up to IDR 500.000.000 (five hundred million rupiah) in 1 (one) Fiscal Year. However, they may be subject to the facility set by Government Regulation Number 23 of 2018 regarding the Final Tax Regime, or the reduced corporate income tax rate set by Article 31E of the Income Tax Law.
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