Tax reform continues with the implementation of Tax Reform Volume III, which focuses on improving five pillars: organization, human resources, information technology and databases, business processes, and legislation. Tax reform is inextricably linked to the tax administration system used by taxpayers.
Indonesia is rolling out a major update to its Coretax system as part of the government’s broader digital transformation of tax administration in 2025, the purposes are to improve transparency and efficiency. So, what should be noted for the taxpayers regarding the new system?
Real-Time Reporting Integration
The development of a digital tax administration system begins with them implementation of e-filling for reporting Tax Returns (SPT) for taxpayers, e-invoices, for tax invoice administration and reporting of Value Added Tax (VAT) Periodic SPTs, and e-billing as a tax payment channel.
The implement tax reforms in tax administration services, the Directorate General of Taxes (DGT) has launched a sophisticated and integrated application system called Coretax, or the Core Tax Administration System.
In addition, this system is expected to improve and simplify the fulfillment of tax rights and obligations for both taxpayers and tax officials. Businesses are required to integrate their accounting systems with the Directorate General of Taxes (DGT) to enable real-time data submission and monitoring.
Data Updates
One of the primary steps taxpayers must take is to update their tax data completely and accurately. It is to support the implementation of Coretax. In this situation, the Directorate General of Taxes (DGT) will ensure that taxpayer data in its system is always up-to-date.
So, taxpayers need to ensure that the information recorded in the tax system reflects actual conditions. However, taxpayer will update the information include identity data, address, type of business, phone number, email address, and other relevant tax information.
Coretax Simulator
The Directorate General of Taxes (DGT) has provided a Coretax simulator trial. This simulator gives taxpayers the opportunity to try out the new system, which will be used in 2025, before it is fully implemented.
Taxpayers can learn how the Coretax system will work, from tax reporting and payments to real-time tax status monitoring. While using this simulator is also an important tool for understanding the new process for more efficient tax reporting and payment.
Taxpayers can participate in this trial and provide feedback to the Directorate General of Taxes (DGT), it is regarding to their experience by using the system. Therefore, taxpayers should not miss this opportunity to try this simulator and ensure they are prepared for the upcoming system changes.
As Coretax is expected to be implemented in 2025, taxpayers need to take several crucial preparatory steps to ensure a good transition to the new system. According to the preparation, taxpayers will be able to utilize this new technology to fulfill tax obligations more easily, quickly, and efficiently.
