WHAT IS IT? IS THIS THE SAME AS NPWP?

This classic question always arises when someone is running a hospitality business, especially restaurants, villas, hotels. To understand what NPWPD is, we need to first understand about Local Tax.

We need to discuss the general definition of tax first before discussing the definition of local tax and central tax. Quoting the book entitled “Taxation” written by Mardiasmo, Taxes are contributions from the people to the state treasury based on laws (which can be imposed) without getting reciprocal services (contraprestasi) which can be directly shown and which are used to pay for public expenses.

• Central Tax
  Central taxes are taxes taken for wider interests, such as country development, state security, military and so on. With its broad spectrum, this tax also serves as the main source of state revenue. Central tax is notified through the annual Tax Return (SPT) to both personal taxpayers and business entity taxpayers.
  Central taxpayers must have an NPWP (Taxpayer Identification Number) as an identity for taxpayers to pay and report taxes. Examples of Central Tax, Income Tax (PPh), Value Added Tax (PPN), Luxury Goods Value Added Tax (PPNBm), PBB.
• Local Tax
  The definition of local taxes as stated in Law No. 28 of 2009 concerning Local Taxes and Levies is a mandatory contribution to the region owed by individuals or entities that are compelling based on law, with no direct reward and used for regional purposes for the greatest prosperity of the people. Definition of local tax above Local taxpayers must have an NPWPD (Regional Taxpayer Identification Number) as an identity for taxpayers to pay and report taxes.
  Example: Hotel tax, restaurant tax, entertainment tax, billboard tax, surface water tax, motor vehicle tax.

Hotel, Villa and Restaurant businesses are required to register NPWPD for each of their business locations. The following requirements must be met to register an NPWPD in Badung Regency :

• Fill out the NPWPD Registration Application Form.
• Copy of ID card of the Owner / Manager.
• Copy of company licenses.
• Photocopy of Company Establishment Deed (if the ownership is in the form of company).
• Copy of Contract and Lease Agreement Letter (if the place of business is on lease/contract status).
• Photocopy of Land Certificate (if the place of business is self-owned).
• Photo of Business Location Front View.
• Plan of Location / Place of Business.
• Company Brochure.
• Sales Recap in 1 Month (restaurant).
• Proof of the lastest Land Tax Payment.
• Company ID Tax.

Have a question about our Tax & Accountancy services? Then contact the Peak Solutions team for your consultation. WA : +6282130050004 E : [email protected]