What is a Tax Identification Number?
The Tax Identification Number (NPWP) is a number issued to taxpayers by the tax office to indentify taxpayers and assist them in fulfilling their tax obligations. (Article 1- paragraph (5) law No. 16 Year 2000 ). 2. How to get an NPWP Taxpayer shall be obligated to register at the tax office in the district in which the taxpayer resides (Article 2- paragraph (1) law No. 16 Year 2000 ) by submitting the following documents: a. Registration and change of data form b. Copy of passport c. Copy of limited stay permit card (KITAS) d. Copy of work permit (for a taxpayer who is an employee) e. Copy of tax identification number of the employer (for a taxpayer who is an employee) f. Power of attorney (if his/her registration process is done by another party) g. Copy of business permit (for a taxpayer who is conducting business or is an independent professional) An individual taxpayer who is an entrepreneur as mentioned in the Circular Letter of Director General of Taxation No. SE-40/PJ.41/2000 i
A Tax Identification Number (Tax ID), also called an Employer Identification Number (EIN), is a nine digit number in the format “12-3456789” that is issued to businesses by the Internal Revenue Service. Virtually every company operating in the United States from Microsoft to the Mom n’ Pop donut bakery on your corner has one of these numbers assigned to it. What originally started out as a number that you would simply use to deposit your payroll taxes has become the de-facto equivalent of a social security number for an individual – only for businesses. In a time where numerous businesses can exist with the exact same name, Tax ID numbers serve the vital purpose of keeping them separate in the eyes of the government – and others!
Often referred to as a tax ID number, the tax identification number is a numerical designation that is assigned to a business entity operating within a given locality. The main purpose of tax IDs is to quickly identify the entity for purposes of associating tax withholding and payments to the business. In addition, many companies make use of the tax identification numbers of vendors as one aspect of their internal accounting procedures. The tax identification number in many ways serves the same purposes as a Social Security number do for an individual. The number makes it possible to associate all relevant tax and income data to a specific entity, and ensure that from the perspective of taxation all remains in order. In many countries around the world, a tax identification number is necessary before the company can operate within the country legitimately. Part of the process of setting up a business entity involves applying for and receiving a tax identification number. Often, this is
For individuals on personal returns, the federal tax identification number is the taxpayer’s Social Security number. For businesses, the federal tax identification number is the employer identification number (EIN). The EIN is a nine-digit number assigned to each business. Usually, the federal EIN is also used for state income tax purposes. Depending on the state, there may be a separate state tax identification number. Expect to be asked for your tax ID number when you sell to another business.
Tax ID numbers, also called an Employer Identification Number (EIN), is a special identifying number assigned solely to businesses by the IRS. Your tax ID number is used to identify your business to several federal agencies responsible for the regulation of business, both Online and Offline. Many merchant accounts, banks and other financial institutions require a tax ID in order to utilize their services. Tax ID’s can also keep your social security information private as many institutions who request tax ID’s will also accept personal social security and banking information as an option (which has to be used unless the business has a tax ID).
