Survey: Most People Earning Over 4 Million Rupiah Do Not Have a Taxpayer Identification Number (NPWP)

The majority of Indonesians with a monthly income exceeding Rp4 million do not have a Taxpayer Identification Number (NPWP).

This is based on the results of a survey by Indikator Politik Indonesia, titled *Public Perception and Compliance in Paying Taxes*, which was released virtually.

The survey results recorded that, of all respondents, 27.5% admitted to having an NPWP. Indikator then highlighted NPWP ownership among high-income earners.

Respondents earning more than Rp4 million who possess an NPWP were recorded at only 43%. This means that the majority, or 57% of respondents in this income group, do not have an NPWP.

"Even among those earning more than Rp4 million, NPWP ownership hasn't reached 50%," said Burhanuddin Muhtadi, Executive Director of Indikator Politik Indonesia, on Sunday (31/7/2022).

"This might explain why Indonesia has a low tax ratio. Because even people earning more than Rp4 million per month only have an NPWP at a rate of 43%," Burhanuddin explained.

Although only 43% of taxpayers with an income exceeding Rp4 million per month have an NPWP, 82% of them submitted their annual tax returns (SPT Tahunan) and 91% paid their taxes.

According to Burhanuddin, taxpayers with an NPWP and an income exceeding Rp4 million per month are more likely to pay their taxes.

Therefore, he reiterated the need for all parties to increase NPWP ownership among taxpayers with an income exceeding Rp4 million per month.

The survey was conducted from July 9-12, 2022. The survey's margin of error is estimated at ±2.8% at a 95% confidence level, assuming simple random sampling.

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