Not everyone needs to hold onto their NPWP (Taxpayer Identification Number) forever. If a person or business no longer meets the criteria to be considered a taxpayer, it's possible to apply for NPWP cancellation. This process is handled by the local Tax Office (Kantor Pelayanan Pajak, or KPP) and is meant to update the tax records for administrative purposes.

Who Can Apply for NPWP Revocation?

Individuals or legal entities may apply for NPWP revocation if they no longer meet the subjective (identity/status) and objective (income/activity) requirements for taxation in Indonesia. Some common cases include:

1. The individual has passed away and left no assets.
2. The taxpayer has moved abroad permanently.
3. A wife chooses to combine her tax identity with her husband’s.
4. An employee or stakeholder no longer meets taxable income thresholds.
5. A young individual (under 18 and unmarried) wants their obligations handled under their parents' tax profile.
6. An inheritance has already been divided among heirs.
7. A business or organization has been dissolved, merged, or liquidated.
8. The taxpayer has multiple NPWPs (excluding branch accounts).
9. A government agency is no longer functioning as a tax collector.

Required Documents for Application

To proceed, applicants need to submit:

1. The official application form for NPWP cancellation, available here: Formulir Penghapusan NPWP
2. Supporting documents based on the reason for revocation, including:

If the taxpayer has passed away (and left no assets):

1. Death certificate or equivalent document.
2. Declaration letter confirming no assets remain or that the estate has been distributed.
3. Application may be submitted by an heir, executor, or estate administrator.

If the taxpayer has moved overseas permanently:

1. Documents proving permanent relocation.

If a wife merges her tax status with her husband’s:

1. Marriage certificate or similar proof.
2. Declaration confirming there is no asset separation agreement or intent for separate filing.

If income falls below the non-taxable threshold:

1. Proof the individual is no longer serving as a shareholder, commissioner, or employee.

If the applicant is under 18 and unmarried:

1. A copy of the family card (Kartu Keluarga), for combining obligations under the parents.

If inheritance has been divided:

1. Declaration letter from the estate administrator listing the heirs and confirming division of assets.

For corporate taxpayers being dissolved:

1. Official proof of liquidation or merger.

For Permanent Establishments being closed:

1. A copy of the dissolution certificate.

For government units:

1. Proof they are no longer serving as tax withholders.

Who Can Submit the Request?

The application can be filed by:

1. One of the heirs
2. Executor or estate administrator
3. Official proxy of the Undivided Inheritance Taxpayer
4. The individual or corporate taxpayer themselves

Processing Timeline

Once the application is submitted (electronically or in person) and officially received, processing time varies by taxpayer type:

1. Up to 6 months for individuals, inheritance-related taxpayers, and government agencies.
2. Up to 12 months for corporate taxpayers.

It’s important to note that NPWP cancellation is purely administrative—it does not cancel any outstanding tax responsibilities or legal obligations that may still apply.

More info: https://pajak.go.id/en/taxpayer-identification-number-tin-revocation