Non-effective taxpayers are temporarily inactive status for taxpayers. This is something that can be important for you to know. It is not new, if the activity of paying and reporting taxes is an obligation that people do when they become taxpayers.
However, this will be an obstacle if the source of income or all the efforts you run to make you a taxpayer experience termination or do not perform operations, then you can become an ineffective taxpayer status
Definition of Non-Effective Taxpayers
It is important for you to know if you can activate taxpayer status by submitting yourself or your company to become 'NE' alias Non-Effective status.
It aims to no longer have the status of being required to pay or report taxes when your source of income ceases to operate.
Non-effective taxpayers are the status when you as taxpayers are exempted from the routine administrative supervision system and the obligation to submit tax returns.
If you have changed your status from taxpayer to 'NE', then taxpayers who are usually subject to income tax are no longer required to report annual taxes.
This is because the obligation to report the tax has been lost. Determination of this taxpayer is actually an effort of NE taxpayers can be done by requesting taxpayers or in an ex officio by the tax office.
NE Taxpayer Criteria
To become or change the status of a taxpayer to become a non-effective taxpayer is through several situations and conditions that have been regulated by the government.
This status can refer to the Director General of Taxes regulation PER-04 / PJ / 2020.
The following are some of the requirements:
- Individual taxpayers who run independent businesses or jobs but actually no longer carry out business activities or do no longer do independent work;
- Individual taxpayers who do not run a business or independent work and whose income is below Taxable Income (PTKP);
- Individual taxpayers who reside or are abroad for more than 183 (one hundred and eighty three) days within 12 (twelve) months and do not intend to leave Indonesia permanently;
- Taxpayers who submit applications for write-off and have not issued a decision or taxpayers who no longer meet the subjective and / or objective requirements but have not yet carried out their NPWP with the following criteria:
- Individual married woman taxpayers who already have a different NPWP from their husbands and do not intend to fulfill their tax obligations separately;
- Individuals who have an NPWP as family members or dependents, namely NPWP with branch codes "001", "999", "998" and so on;
- Government treasurer taxpayers who no longer meet the requirements as taxpayers because those concerned are no longer making payments and have not yet eliminated their NPWP;
- Taxpayers whose addresses are not known or found again.
- For 3 (three) consecutive years have never fulfilled tax obligations in the form of tax payments or submission of Periodic Tax Returns and / or Annual Tax Returns;
- Individual taxpayers who have passed away but have not received official written notification from their heirs or have not submitted NPWP write-offs.
Process Stages of Submitting 'NE' Status
The NE Taxpayers can be determined based on the taxpayer's application or in an ex officio and can only be done by the Tax Office. In the event that the application for the determination of the NE Taxpayer is submitted through the Tax Counseling and Consultation Service Office (KP2KP). KP2KP will issue a receipt and forward the application file to KPP no later than 1 (working day after the application is received.
The application for the determination of the NE Taxpayers with a statement letter must meet the criteria using the sample format as listed in Attachment XIX of the Director General of Taxes Circular Number SE-60 / PJ / 2013.
Applications for becoming a NE Taxpayers can be made manually or online. Following are the procedures for submitting a WP NE:
Application Procedure for Submission to Become NE Taxpayers via Online
Fill out the NPWP elimination form on the e-Registration application available on the Directorate General of Taxes page at Pajak.go.id.
An application for deletion that has been submitted by a taxpayer through the e-Registration application is deemed to have been signed electronically or digitally and has legal force.
Taxpayers who have submitted a complete NPWP elimination form through the e-Registration application and send the required documents to the Tax Office whose working area includes the taxpayer's residence or domicile or place of business activities.
If the required documents have been received completely, KPP will issue a proof of receipt of the letter electronically.
Application Procedure for Submission to Become NE Taxpayers Manually
Taxpayers who have met the criteria as WP NE can come directly to the Tax Service Office (KPP) where the taxpayer is registered. If the taxpayer is in the form of an entity, you should also carry the company seal.
After arriving at the Tax Office, taxpayers are welcome to go to the Integrated Service Place (TPT) section.
In the TPT section, taxpayers can request an application form as a NE Taxpayers.
Then taxpayers are required to fill out the NE Taxpayers application form and do not forget to include a telephone number that can be contacted.
NE Taxpayers Reactivation
The reactivation of NE Taxpayers can be done based on the taxpayer's application and in an ex officio, and can only be done by KPP. The reactivation is carried out if the taxpayer who has been determined as a NE Taxpayers no longer meets the criteria. Tax Office will conduct tax administration research in the context of reactivation.
Taxpayers with head office status cannot be determined as NE Taxpayers if there is an active branch. Taxpayers with PKP status can be determined as NE Taxpayers after the first revocation of PKP is clear.
Non-effective taxpayers cannot be subject to a Tax Collection Letter (STP) even though the taxpayer does not make periodic / annual payments and does not report periodic / annual tax returns (SPT).