Introduction
The Indonesian government introduced the CoreTax Indonesia, An Administration System (CoreTax) on January 1, 2025, under Presidential Regulation No. 40/2018. CoreTax is an advanced, technology-driven system developed by the Directorate General of Taxes (DGT) to enhance tax administration efficiency and compliance in Indonesia.
This new digital infrastructure integrates multiple existing tax applications, simplifying tax processes for businesses and individuals alike. MAM Corporate Solutions provides expert assistance in adapting to these tax changes, ensuring smooth compliance with CoreTax regulations.
Key Features of CoreTax
1. Integrated Digital Tax Platform
CoreTax Indonesia consolidates various tax-related applications, including e-Bupot, e-Faktur, and DJP Online, into a single, unified platform. This integration streamlines tax rights and obligations for taxpayers, making tax management more efficient and reducing administrative burdens.
2. Tax Deposit e-Wallet
A key innovation in CoreTax is the introduction of a tax deposit feature, functioning as an e-wallet. Taxpayers can pre-load funds into their tax account, enabling faster and more secure tax payments while reducing the risk of late payment penalties and interest charges.
3. Unified Billing Codes
Previously, a billing code could only be used for a single type of tax settlement. With CoreTax, a single billing code can now cover multiple tax payments, simplifying the payment process, improving efficiency, and reducing errors in tax payments.
4. Automated Tax Document Management
CoreTax Indonesia introduces a special menu that centralizes all tax-related documents, including:
- Tax Collection Letters
- Tax Assessment Notices
- SP2DK (Tax Compliance Inquiry Letters)
- Official Tax Announcements
Additionally, it features an integrated notification system for tax reporting, settlement, and response deadlines. This ensures taxpayers never miss key dates and can proactively manage compliance.
5. Enhanced Tax Return Formats
Both monthly and annual tax returns have undergone significant changes, incorporating a more structured and detailed format for streamlined tax reporting. These updates help businesses ensure accuracy and maintain compliance more easily.
6. Tax General Ledger
A Tax General Ledger feature allows taxpayers to track their tax balance in real time. This enables businesses to maintain accurate tax records, ensures greater transparency in financial management, and reduces the chances of errors or misreporting.
7. Prepopulated Tax Return Reporting
Previously, prepopulated tax returns were limited to Article 21 Withholding Tax. With CoreTax, automated tax return generation has been extended to multiple tax articles, including Articles 15, 22, 23, 25, and Final Tax Article 4 (2). This automation enhances accuracy, minimizes reporting discrepancies, and improves efficiency in tax filings.
8. Corporate Taxpayer Role Impersonation
Corporate taxpayers can now authorize representatives to manage their tax obligations. While the default signatory remains the company’s director, additional representatives or proxies can be assigned within the CoreTax system, allowing for greater flexibility in tax administration.
9. Digital Certificates for Tax Documentation
Previously, corporate digital certificates were required for signing tax documents. Under CoreTax, individual digital certificates are now used, ensuring more secure and verified transactions and reducing the risk of fraud or unauthorized filings.
Challenges and Considerations
Despite its many benefits, CoreTax introduces challenges that taxpayers must be aware of:
- Role Access Management: The impersonation feature requires careful delegation to avoid unauthorized access to corporate tax accounts.
- Increased Tax Monitoring: With enhanced digital tracking, DGT can more easily identify inconsistencies and non-compliance. Businesses must ensure accurate reporting to avoid penalties and audits.
- System Adaptation: Companies need to familiarize themselves with CoreTax to transition smoothly from previous systems and ensure compliance with updated requirements.
To help businesses navigate these challenges, MAM Corporate Solutions offers comprehensive tax compliance services. Learn more about our monthly and annual tax compliance services here.
How CoreTax Benefits Businesses
With the implementation of CoreTax, businesses in Indonesia experience:
- More efficient tax reporting and compliance
- Reduced manual errors through automated features
- Seamless integration of tax processes on a single platform
- Enhanced data security and transparency
- Simplified tax payment methods through e-wallets
- Improved tracking and reporting accuracy
Additionally, with increased automation, businesses can allocate resources more effectively and focus on growth rather than administrative tax burdens.
How MAM Corporate Solutions Can Help
Navigating Indonesia’s evolving tax landscape can be challenging. MAM Corporate Solutions provides expert guidance and tailored tax services, including:
- Comprehensive tax compliance support
- Assistance in adapting to CoreTax regulations
- Tax planning and advisory services
- Risk assessment and compliance audits
- Training for businesses to understand CoreTax implementation
Schedule a consultation or submit your enquiry to us today to ensure your business stays compliant and maximizes tax efficiency under CoreTax.
