Do you need to cancell your tax id when leaving the country?

Gweedo

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Mar 6, 2021
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Dear Fellow members,



I have a question and hope to receive some useful info... I have been working for some time in INDO and have been laid off due to COVID last July 2020. I moved 1 month after back to Europe and changed my official/registered address back in my home country. Now a week ago, I received by email a letter from the tax department to file my tax returns for 2020, which is been taken care off.

Now my question here is as follows... Will I keep receiving requests from the tax department to file for income taxes for all subsequent years, even though I am not living there anymore or having any source of income?

I heard some people say you should de-register your tax ID card when leaving the country, but this seems to require some paperwork and time... Some other people say they have not de-registered, as they moved and have no income to declare in Indonesia. However, they are still in the system and suspect liable to file for income tax returns?

Does anyone know someone or found themselves in a similar situation? Please feel free to share your opinion and advice.

Best regards,

GWDO
 

dafluff

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Officially you should de-register your NPWP when you leave the country for good. You can probably have your accountant/tax consultant do it for you after you leave.


The potential problem of not de-registering is in case one day you return to Indonesia and have to start paying taxes again, you could be missing several years worth of filing.
 

Gweedo

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Mar 6, 2021
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So there will be only a problem when I decide to work and start paying taxes again in Indonesia. So I assume that once you can prove you are no longer a resident (moved your official address abroad) AND you have no longer any income in Indonesia, there's no need to file for tax returns, even they are nill. Do you think there will be a problem for me returning as a tourist to Indonesia at some point, in case I have not de-registered my tax ID? Are immigration and tax authorities linked with each other?
 

snpark

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Yes you are actually supposed to cancel it AND to return the physical card and then close your account and they give you some sort of clearance or something.
Otherwise they will send you tax return every year since they assume you are still here
 

Gweedo

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Mar 6, 2021
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I am curious to know, would I still be able to hold a bank account, once the tax id card has been de-registered?
 

snpark

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Don't quote me but yes, they usually only care about the KITAS, just keep a copy of the NPWP card and use that but really once it is on file with them it doesn't shouldn't change
Likewise annually they are supposed to update your new KITAS etc, some banks do, some don't

Depends on your relationship
But for credit, they might be stricter
For straightforward savings account, pretty easy
 

Helpful Herbert

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Mar 24, 2019
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If the tax authority links to immigration within the next 2 decades I'd be very surprised. In most developed countries it has not yet happened.
 

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