Yes. Every PT PMA (foreign investment company) in Indonesia must obtain an NPWP (Nomor Pokok Wajib Pajak or Tax Identification Number). It is a non-negotiable requirement under Indonesian tax law. Without an NPWP, your company cannot open a bank account, apply for a business identification number (NIB), or secure essential permits.
Also read: What is NPWP in Indonesia: A Comprehensive Guide
Why NPWP is Mandatory
The NPWP requirement is established under Law No. 36 of 2008 on Income Tax. After the Ministry of Law and Human Rights approves your PT PMA deed of establishment, the next step is registering for an NPWP. The Directorate General of Taxes (DJP) enforces this rule for all entities, even for representative offices that do not generate income.
Integration with Company Formation
The NPWP application is an integral part of the company setup process. After MOLHR approval, you must register your NPWP at the tax office before moving forward with OSS-based NIB registration. This integration ensures compliance and smooth progression in establishing a legal business presence.
Also read: Does a PT PMA Company Need Indonesian Shareholders and Employees?
Risks of Operating Without NPWP
Skipping NPWP registration comes with significant risks. Companies without NPWP face higher tax rates and surcharges. Indonesian banks will not open corporate accounts without valid NPWP documentation. You also cannot obtain licenses, permits, or import approvals. Persistent non-compliance can result in fines up to four times the unpaid tax or even imprisonment.
Registration Process and Timeline
The NPWP application typically takes 1–3 working days. You can apply through the DJP Online Portal or directly at the local tax office. Required documents include:
- Ratified deed of establishment
- Domicile certificate
- Director’s or authorized person’s ID
Professional advisors usually handle this step as part of a complete PT PMA registration package.
Also read: How to Set Up PMA Company in Indonesia: Guide for Foreigner
Ongoing Compliance After Registration
Owning an NPWP comes with continuous obligations. Your PT PMA must submit annual corporate income tax returns, monthly reports (even if inactive), and update data through the OSS system. Neglecting these obligations can trigger audits, penalties, and blacklisting by BKPM.
The Smarter Way to Stay Compliant
Handling NPWP and tax compliance can be overwhelming for foreign investors. This is where professional support makes a difference.
InvestinAsia offers comprehensive PMA Company Registration Services, including NPWP setup and OSS integration. We also provide a dedicated Indonesia Tax Compliance Service to ensure your NPWP registration, reporting, and obligations are managed correctly. This way, you stay compliant, avoid penalties, and focus on growing your business in Indonesia.
You can also enjoy special package prices for PT PMA and KITAS services.
Ready to start your business and investment in Indonesia? Chat with us now for FREE consultation!
FAQs
Does every PT PMA need an NPWP?
Yes, NPWP is legally required for all PT PMA companies, regardless of business activity.
Can I operate a PT PMA without NPWP?
No. Without NPWP, you cannot open bank accounts, get an NIB, or obtain licenses.
How long does NPWP registration take?
The process typically takes 1–3 business days once all documents are in order.
Are inactive PT PMAs still required to submit tax reports?
Yes. Even inactive companies must file annual tax returns and monthly reports.
Who can help with NPWP registration?
Professional firms like InvestinAsia can register your NPWP and manage compliance obligations.
