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Vendor has no NPWP

Vendor jasa kami tidak punya NPWP. Potong berapa?

The situation

PPh 23 is 100 percent higher for payees without an NPWP, so 4 percent on services instead of 2 percent.

The law

  • Art 23, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Withholding of 15 percent on dividends, interest, royalties and prizes and 2 percent on rent (not land and buildings) and listed services; 100 percent higher without an NPWP

What it means for you

Example: service fee IDR 50 million: 2 percent gives IDR 1 million; without NPWP, IDR 2 million. Ask the vendor for their NPWP or NIK. An individual vendor is under PPh 21, not PPh 23.

What to do

  1. Ask for the vendor's NPWP.
  2. Withhold 4 percent if none.
  3. Issue the slip.
  4. Update the vendor master.

Under withholding becomes your liability.

We can do this for youMonthly withholding on vendors and non-residents: PPh 23, PPh 4(2) final and PPh 26 with unified slips: IDR 1.500.000

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