Your business has closed, you are retired, or your income has stopped. The first thought that usually comes to mind is: just delete the NPWP. However, for individuals still residing in Indonesia, that door is almost always closed. What is open is the inactive status. These two paths differ significantly in terms of requirements, processing time, and the risk of being audited.
The term "NE" has been replaced
Since PMK 81/2024, the regulation that serves as the basis for Coretax, the status of Non-Effective Taxpayer (NE) has been renamed to Inactive Taxpayer. Its definition: a Taxpayer who does not meet subjective and/or objective requirements, but whose NPWP has not been deleted. Thus, an inactive NPWP is put to rest, not discarded.
Deletion: the list is short and closed
According to Article 28 paragraph (2) of PMK 81/2024, an individual's NPWP can only be deleted if the Taxpayer:
- has passed away and left no inheritance;
- has left Indonesia permanently; or
- has more than one NPWP.
For entities (Article 46 paragraph (2)), the reasons are: liquidated or dissolved due to cessation or merger of business, a permanent establishment has ceased operations in Indonesia, or has more than one NPWP.
Stopping a business, retiring, and income below PTKP are not on that list.
Deletion upon request is decided based on the results of an Audit (Article 29 paragraph (3) and Article 47 paragraph (3)). The additional requirements are also strict (Article 31 and 49): no tax debts, not under audit or investigation, and not undergoing objections, appeals, or other legal efforts. The decision takes a maximum of 6 months for individuals and 12 months for entities. If that deadline passes without a decision, the request is considered granted and the deletion letter must be issued no later than 1 month thereafter.
Inactive status: who can qualify
Article 25 paragraph (2) of PMK 81/2024, further detailed in Article 34 paragraph (2) of PER-7/PJ/2025, opens this status for individuals who:
- have stopped their business or freelance work;
- are not in business and have not or do not earn income, or their income is below PTKP;
- are Indonesian citizens residing in Indonesia and intend to become foreign tax subjects, but have not met the requirements;
- are Indonesian citizens residing in Indonesia, but no longer meet subjective and objective requirements; or
- as a wife already has an NPWP, then chooses to combine her tax obligations with her husband.
Entities that no longer meet subjective and objective requirements can be made inactive while their NPWP deletion is still in process or has not been carried out.
Quick comparison
| Inactive | Deletion | |
|---|---|---|
| Basis | PMK 81/2024 Article 25 and 45, PER-7/PJ/2025 Articles 34 to 43 | PMK 81/2024 Articles 28 to 31 and 46 to 49, PER-7/PJ/2025 Article 44 |
| How KPP tests | research | Audit |
| Decision deadline | 5 working days | 6 months (individual), 12 months (entity) |
| Additional requirements | meet one criterion and attach evidence | no tax debts, not under audit or litigation |
| Path back | can be reactivated | not regulated |
What makes that status active again
Once you no longer meet the criteria, the inactive status can be reactivated, upon your request or ex officio. Article 43 paragraph (2) of PER-7/PJ/2025 mentions the triggers for the position: you submit an SPT, pay taxes, resume business or freelance work, request services that change the status, or fulfill other tax rights and obligations. SPT and payments for the period before the inactive designation are excluded. Thus, even a new payment can reactivate it.
Two other provisions surrounding this status:
- If you are a Taxable Entrepreneur, the inactive status can serve as the basis for KPP to revoke PKP designation ex officio through administrative research (PMK 81/2024 Article 69 paragraph (3)).
- The DJP can also deactivate ex officio. The requirements apply simultaneously: five consecutive years without SPT, without deductions by others, and without tax payments, plus no arrears, not under audit, and not receiving tax facilities (PER-7/PJ/2025 Article 38 paragraph (2)).
How to apply in Coretax
- Log into your Coretax account, open My Portal, then Status Change, then Establishment of Inactive Taxpayer.
- Fill out the form and upload documents that prove your criteria.
- Check the statement, click Submit, then monitor in My Portal, menu My Cases.
According to the Coretaxpedia DJP page, inactive Taxpayers are not required to report SPT from the tax year they are designated inactive. Note the word "from": the years prior to the designation are not exempted. One more note, individuals whose net income in a year does not exceed PTKP are already exempted from the Annual Personal Income Tax SPT by Article 112 PER-11/PJ/2025, with or without inactive status.
If you prefer to see the explanation directly, there is a clip here.
Sources
- Regulation of the Minister of Finance Number 81 of 2024 concerning Tax Provisions in the Context of Implementing the Core Tax Administration System, JDIH BPK, status Active.
- Regulation of the Director General of Taxes Number PER-7/PJ/2025: implementation guidelines for NPWP, PKP, and PBB objects, JDIH Ministry of Finance, effective May 21, 2025.
- Regulation of the Director General of Taxes Number PER-11/PJ/2025: provisions for reporting PPh, PPN, PPnBM, and Stamp Duty, JDIH Ministry of Finance, effective May 22, 2025.
- Coretaxpedia DJP: Application for inactive status, Directorate General of Taxes, updated September 17, 2025.