Some Facts About NIN As Individual TIN

By: Sondang Romian Purba, employee of the Directorate General of Taxes

The public started to speculate when President Jokowi stated that it was necessary to implement a policy of including standardized and integrated identity numbers in public services as he signed Presidential Regulation No. 83/2021 concerning the inclusion and utilization of the National Identity Number (NIN/NIK) and Tax Identification Number (TIN/NPWP) in public services, followed by the issuance of the Harmonization of Tax Regulation Law. The statement that NIN will be used as an individual TIN brought some opinions to the surface. Though it’s been mentioned that the reason of this policy is to integrate the population database and tax administration system while at the same time facilitating individual taxpayers in fulfilling their tax rights and obligations, some misunderstandings still occurred at that time and maybe even now. That’s why socializing NIN as TIN is important to get the public to understand the concept and be ready when the policy is fully implemented by the beginning of 2024.

On July 14th 2022, Minister of Finance Regulation No. 112 about Tax Identification Number for Individuals Taxpayer, Corporate Taxpayer, and Government Agencies Taxpayer was issued. The regulation offers more details about the implementation of the policy. As we can read in the decree, the background behind this issuance was to create legal certainty following the Harmonization of Tax Regulation Law by communicating it thoroughly to the public.

Here are some facts about NIN as (individual) TIN to take away the uneasiness of some people when saying phrases like "My NIN is my TIN, too".

SOME FACTS ABOUT NIN AS INDIVIDUAL TIN

1. Having NIN doesn’t certify someone as a taxpayer. The most important thing in this statement is that for someone who has income, their NIN automatically acts as their TIN, while for one who doesn't have income or has income lower than taxable income, NIN is merely NIN. Back then when the regulation issued for the first time, there wasopinion said that NIN as TIN means automatically everyone is a taxpayer, hence everyone  has to pay taxes. This is certainly  a misunderstanding from the very basic knowledge about tax, because to become a taxpayer one has to meet these two conditions : subjective and objective. Subjective begins when someone is either born in Indonesia, resides in Indonesia or stays in Indonesia for at least 183 days within 12 months, or has been in Indonesia for one fiscal year, and ends when someone dies or leaves Indonesia for good. The objective condition will be met when someone gets an income. So even though someone is eligible for the subjective criteria, the fact that he/she doesn't have income or has income lower than the nontaxable income will cancel the obligation to become a taxpayer. Bear in mind, for someone who meets the subjective and objective criteria to be a taxpayer, their NIN will be their TIN.
2. Less is more. For taxpayers, less number to maintain, and for DGT, more data to gain. Using NIN in Indonesia, which literally connects to almost every aspect of Indonesian citizens from telecommunication, banking, property and land ownership, health facilities like Government Social Health Insurance (BPJS), and all public administration, will be a powerful tool for DGT to help strengthen the database. On the other hand, NIN as TIN also gives more convenience to the taxpayer by only remembering one number. Since NIN is like an omnipresent number in Indonesia that we use for dealing with a lot of daily public administrative activities, it will be easier to use that number in dealing with tax administrative affair as well. Furthermore, for the one who doesn't have a TIN, once they are qualified as a taxpayer, they don't have to register anymore. So it's like it's ready all the time; once you need it, you can use it to fulfill your tax obligation or claim your tax rights.
3. From 15 digits to 16 digits. The pattern of the number in TIN now is 16 digits, just like the nature of the pattern of Indonesian NIN that consist of 16 numbers. For expatriates who want to register to get their TIN, since they're not Indonesian citizens and don't have an Indonesian NIN, they will be given a new TIN consisting of 16 digits. On the other hand, for those who had their TIN before July 14th, 2022, they just have to add one digit (number 0) in front of their current TIN.
4. Fully implemented by January 1st, 2024. This is meant for the convenience of the taxpayer and for the DGT as well. It is understandable if it feels uncomfortable in the beginning, just like the price of any change. This is a big change, and no doubt it needs time to adjust. That's why though the policy applied since July 14th 2022, there is still adjustment period for about one and a half years until the end of 2023. There will be enough time for the public in general and taxpayers in particular to get used to it. Until January 1st, 2024, taxpayers can still use the old TIN to fulfill their tax rights and obligations. So before January 1st, 2024, taxpayers who got their TIN before July 14th, 2022 can use both their current TIN and their NIN.
5. The task of validating NIN as TIN. For the individual taxpayer that has a TIN before July 14th, 2022, until end of 2023  will be used by DGT to synchronize further and it is expected that taxpayers  will do some matching task to compare  their data in order to synchronize the data in their TIN and their NIN. Some data that needs to be validated are email, address, and family members. Individual taxpayers can do this by using different channels. First, by accessing the DJP online site; second, by calling the 1500200; and the least recommended option is by doing it at the tax office where the taxpayer is registered. In this digital era, maximizing the online channel will be a better option. 

Now that we know some facts about NIN as TIN, hopefully the public will get a better understanding and, of course, with good intention, will spread the facts and the right information about it.

*)  This article is the author's personal opinion and does not reflect the view of the institution where the author works.