Status of Husband-and-Wife Tax ID Numbers in the Coretax Era
Some of you may already be married but have not yet merged your TINs with your spouse. This means that both husband and wife still maintain separate TINs. In fact, merging TINs is important because it directly affects the calculation of Withholding Income Tax.
This is because the tax payable calculation for couples who do not merge their TINs is treated the same as those who have a prenuptial separation of assets agreement, or when the wife chooses to exercise her tax rights and obligations independently.
In some cases, the payable tax may even be higher compared to couples who merge their TINs. If until now there have been couples who have not merged their TINs but did not experience any impact on the amount of tax payable, this could happen because the tax system was still processed manually.
In the Coretax era, with taxpayer data becoming increasingly synchronized, the tax authority will be able to easily detect taxpayer status and automatically adjust the tax calculation.
Using the Husband’s Tax ID Number (TIN)
A wife who chooses to merge her TIN must submit an application for the deletion of her TIN to the Directorate General of Taxes (DGT). Thereafter, in fulfilling her tax obligations, she may use her husband’s TIN.
If necessary, a wife who has merged her TIN and uses her husband’s TIN may print a TIN card that also includes her own name.
The application for the deletion of a TIN may be submitted electronically or in writing, accompanied by several supporting documents. The documents that must be provided by a wife choosing to merge her TIN include:
- A copy of the marriage certificate or an equivalent document
- A statement letter declaring that no prenuptial separation of assets agreement has been made, or a statement that she does not wish to exercise her tax rights separately
READ: DGT Issues Technical Regulations on Coretax Usage Covering 12 Tax Services
Why Can Overpayment Occur?
The calculation of Withholding Income Tax for husband and wife who do not merge their Tax ID Numbers (TINs) and either have a prenuptial separation of assets agreement (PH) or the wife chooses to fulfill her tax obligations independently (HT), is carried out by combining both spouses’ income and then determining the net income value.
Next, to determine the amount of Taxable Income (PKP), the couple’s combined net income must be reduced by the combined Non-Taxable Income (PTKP).
Once the PKP amount is determined, it is then multiplied by the progressive Withholding Income Tax rates. The final step, after knowing the combined tax payable, is to calculate the proportional amount of tax for each spouse using the following formulas:
Tax Payable by Husband = (Husband’s net income/Combined net income) × Combined Withholding Income Tax
Tax Payable by Wife = (Wife’s net income/Combined net income) × Combined Withholding Income Tax
With this calculation scheme, the result is often an underpayment. In other words, the amount of Withholding Income Tax payable calculated will be greater than the amount already withheld from the income of either the husband or wife by their respective employers.
Matching the Combined TIN of Husband and Wife
In connection with the implementation of Coretax, one of the provisions that taxpayers must pay attention to, including those who have already merged their TINs, is the requirement to match the TIN with the National Identification Number (NIK).
The matching of the combined TIN can be carried out using the husband’s TIN, through the DJP Online portal, or via www.pajak.go.id. (ASP/HFZ/KEN)
