Vehicle Name Transfer Service Subject to PPh 21 or 23

The Directorate General of Taxes, through its Kring Pajak contact center, issued a statement in Jakarta on 9 December 2025 clarifying the tax treatment of vehicle name‑transfer services. The clarification responded to social‑media inquiries about withholding tax on inter‑city name‑transfer agencies.

When the service recipient is an individual taxpayer, the fee is subject to Article 21 withholding tax under PMK No.168/2023. If both parties are corporate taxpayers and the service falls under the categories listed in Article 23 of the Income Tax Law or PMK 141/2015, Article 23 withholding tax applies.

Consequently, service providers and clients must apply the correct withholding to avoid penalties. This ensures tax compliance and contributes to state revenue from the transportation sector.