efin and npwp

Differences between EFIN and NPWP, Both Used in Tax in Indonesia

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When managing taxes in Indonesia, you may encounter two terms that are close to each other, namely EFIN and NPWP. What is the difference between the two?

For that, we must first know the meaning of EFIN and NPWP.

What is EFIN

EFIN, or Electronic Filing Identification Number, is an identity number issued by the Directorate General of Taxes (DGT) to taxpayers who conduct electronic tax transactions.

Employees need it to report annual tax returns or SPT via e-filing and generate tax payment billing codes. This identity number is valid for life and can be used by taxpayers to register on the DJP Online application site.

EFIN is important because it is one of the requirements to report tax returns online through e-Filing. With e-filling, employees can submit tax returns without having to come to the tax office. It saves time, money, and effort and reduces the risk of errors.

In addition, EFIN is also important because it can be used to create a billing code for online tax payments through e-Billing. E-Billing is an electronic tax payment system that makes it easy for taxpayers to pay taxes through banks and ATMs.

How to Get EFIN

The way to obtain an EFIN is by submitting an application to the nearest Tax Office (KPP) for individual taxpayers or to the registered KPP for corporate taxpayers. The applicant must bring the required documents, such as:

  • Identity Card (KTP) or passport
  • Taxpayer Identification Number (NPWP)

The taxpayer will receive an EFIN in the form of a letter containing the EFIN number, name, address, and taxpayer’s NPWP. Taxpayers should keep this letter well, as duplicates will not be provided.

What if you forget your EFIN?

EFIN NPWP

If you forget your EFIN, you can contact the nearest tax office or registered tax office to request EFIN activation. Taxpayers must provide their name, address, and NPWP and show their ID card or passport as proof of identity.

In addition, you can also send an email to lupa.efin@pajak.go.id with the subject “Forgot EFIN” and attach a scan of your KTP or passport, NPWP, and EFIN application letter (if applicable). You will get an email reply containing EFIN information within 1×24 hours.

What is NPWP

NPWP card is a tax identification number as an identity in order to fulfil taxation rights and obligations. It can be interpreted as an identity, like KTP and SIM for taxpayers to carry out administrative interests related to taxation.

This NPWP must be owned by Indonesian citizens and foreigners who are taxpayers, both individuals and business entities.

The function of NPWP for tax affairs:

1. As a unique code that is always used in every taxation matter, your tax data will not be confused with other taxpayers.

2. What happens if the tax fee you pay turns out to be overpaid? Surely you hope the money can be returned, right? In simple terms, this is what is called tax restitution. The main requirement for taking care of the restitution process is to show the NPWP.

3. There is a difference in the tax rates for those who have an NPWP and those who do not have one. If you do not have an NPWP, the tax rate is 20% higher than taxpayers with an NPWP.

 The function of NPWP outside of tax matters:

For those of you who intend to apply for credit to the bank, the NPWP is an important document that is a requirement for credit. If you have a business, you should have an NPWP. This is because the NPWP is required for obtaining a Trade Business Licence (SIUP).

Difference between EFIN and NPWP

Both EFIN and NPWP are identity numbers that every taxpayer must own to carry out tax transactions, such as creating a billing code to pay taxes or submitting tax returns via e-Filling.

Although they look the same, they are two different things. Employees and entrepreneurs must also include a TIN in the process of applying for an EFIN.

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Social Expat proudly recommends our partner, LetsMoveIndonesia, for a variety of exclusive Tax & Accountancy packages for your business in Indonesia. Contact LetsMoveIndonesia for a free consultation all about tax service in Indonesia.

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A writer fueled by passion, with a deep admiration for Taylor Swift’s artistry. You can find Imelda on the weekend in the joy of being a paw parent or curled up on the couch, engrossed in the latest sci-fi or mystery novel.

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