Insurance Agents Must Be Certified PKP, Requirements, Penalties

JAKARTA, December 7, 2025 – Insurance agents are required to report their business to the Tax Service Office (KPP) whose jurisdiction includes their residence, domicile, or place of business activity in order to be certified as a Taxable Entrepreneur (PKP). Agents who already hold a Taxpayer Identification Number (NPWP) are considered PKP under Article 314 paragraph (3) of PMK No 81/2024.

Agents without an NPWP must first register with the appropriate KPP to obtain the number and achieve PKP status. Moreover, when agents provide taxable goods or services in addition to brokerage, they must report turnover; exceeding the small‑business threshold triggers the PKP requirement.

PKP status obliges agents to issue tax invoices or equivalent documents that include the PKP’s NPWP, commission amount, and collected VAT, and these must be issued no later than the end of the month following receipt of payment. Non‑compliance with these provisions subjects agents to administrative penalties under the General Tax Law.