Procedures and Prerequisites for the Determination of Non-Effective Corporate Taxpayers

Corporate taxpayers who require the determination of Non-Effective Corporate Taxpayers can submit electronically or manually; the following documents to be attached are:

- Statement of Non-Effective Corporate Taxpayer

- other documents show that the Taxpayer is eligible to obtain the determination of the Non-Effective Taxpayer.

Based on Article 24 PER-20/PJ/2020, the criteria to be determined as a Non-Effective Corporate Taxpayer are:

  • Taxpayers who apply for the revocation of TIN (Tax Identification Number), but the decree on the TIN revocation has not been granted;
  • Taxpayers who do not file a tax return or do not have tax payment transactions either through self-payment or through the withholding or collection of others for a period of two consecutive years;
  • Taxpayers who do not satisfy the required papers of the registration of TIN on Article 10 section (7);
  • Taxpayer for whom an address could not be determined based on field investigation;
  • Taxpayer for whom the DGT has issued a Branch TIN for an Underpaid Tax Assessment Letter of VAT on Self Building Activities (PPN KMS);
  • Government institutions that are not qualified to act as a withholding agent, but the government institution has not requested that their TIN be revoked; or
  • Taxpayers not indicated in article 24 PER-4 PJ 2020 who no longer meet subjective and/or objective standards but have not yet requested the revocation of their TIN even though they no longer meet the requirements.

Taxpayers have the option of submitting an electronic application for the determination of whether they qualify as a non-effective taxpayer through either

A. the Registration application that is available on the website of the DGT, in which they:

1. fill out and submit the Non-Effective Taxpayer Form; and

2. upload digital copies of supporting attachments; or

B. the Contact center and other channels, to submit a written application for a determination of non-effective taxpayer status, the applicant must:

1. Fill out and sign the Non-Effective Taxpayer Determination Form; and

2. Attach a Declaration Letter of Non-Effective Taxpayer together with any supporting documentation.

3. Delivered directly to the Tax Office where the Taxpayer is registered, either through Tax Consulting Office of Service and Counseling (KP2KP) or through a post and courier service.