The Government has issued new regulations for Government agencies relating to the regulation of Taxpayer Identification Number (TIN) and Taxable Entrepreneur (PKP) in the context of implementing tax rights and/or obligations. The regulation is contained in Minister of Finance Regulation Number 231 / PMK.03 / 2019 (PMK-231) which will take effect on April 1, 2020. This new regulation aims to facilitate, encourage compliance with the implementation of rights and fulfill tax obligations, and improve services to government agencies, so as to create legal certainty or regulation, and optimization of tax revenue from expenditure and revenue of government agencies.
As stipulated in PMK-231 it is stated that the Director-General of Taxes (DGT) in a position that can delete the TIN of the government treasurer and revoke the inauguration of the Taxable Entrepreneur (PKP) on the treasurer of revenue, the elimination of the TIN and/or the revocation of the PKP confirmation carried out against Government Agencies that have not fulfilled the requirements as a tax deduction and/or tax collectors in accordance with statutory provisions in the field of taxation. The elimination of TIN is carried out against Government Agencies that have been liquidated due to experiencing the following conditions:
- no longer operates as a Government Agency;
- dissolution of Government Agencies caused by the merger of Government Agencies;
- does not get a budget allocation in the following fiscal year; or
- no longer operating due to other causes.
Then, the revocation of PKP confirmation will be carried out against Government Agencies that no longer fulfill the criteria as PKP.
After eliminating the TIN and / or revocation of the PKP confirmation, the Directorate General of Taxation subsequently issued a new TIN for all government agencies and confirmed the PKP for government agencies whose treasurers had previously been confirmed PKP. Then, after receiving a new TIN, all government agencies submit the data changes to the Tax Office where the agency is registered and submit an electronic certificate and PKP account activation request for the agency that has been confirmed as PKP.