The Coretax system implementation in Indonesia is facing significant challenges following its launch on January 1, 2025. In response to numerous issues that have arisen since its rollout, Commission XI of the House of Representatives (DPR) has urged the Directorate General of Taxes to delay the full implementation of Coretax.
To mitigate disruptions, the Coretax application will now operate alongside the existing tax system, allowing for a smoother transition as stakeholders address the ongoing concerns and work towards a more effective tax administration.
Understanding the Coretax System Implementation
The Coretax system is designed to modernize Indonesia’s tax administration by streamlining processes and enhancing efficiency. It aims to replace outdated systems with a more integrated approach to tax collection and management.
One of the key goals of Coretax is to improve data accuracy and reduce processing times, ultimately leading to better compliance and increased tax revenue. However, the transition has not been smooth.
Taxpayers and officials have reported various challenges, including technical glitches and usability issues. These problems have raised concerns about the system’s readiness to handle the complexities of Indonesia’s tax landscape, prompting calls for a more cautious implementation strategy.
Indonesian Government’s Reasons for Coretax Delay
On February 10, 2025, Commission XI of the DPR held a closed-door hearing with Suryo Utomo, the Director General of Taxes at the Ministry of Finance, to discuss the implementation of the Coretax system.
The meeting lasted over four hours, underscoring the urgency of the issue. Chairman Mukhamad Misbakhun revealed that nearly all factions within the commission had proposed delaying the system’s full implementation.
The main concern, he explained, was its potential impact on state revenue. As reported by Bisnis.com, Misbakhun stated, “The primary concern is to ensure that state revenue is not affected. That is the most important thing.”
He also stressed the importance of prioritizing taxpayer services, emphasizing that these policies exist for the benefit of taxpayers. Ongoing disruptions have raised significant concerns, leading the commission to push for a delay to protect taxpayer interests and maintain revenue stability.
Taxpayer Concerns with Coretax Implementation
The delay in the Coretax system implementation has raised major concerns among taxpayers. Many individuals and businesses worry about the potential disruptions to tax services, which could lead to confusion and compliance issues.
As the Coretax application is set to run alongside the existing system, taxpayers may face challenges in navigating two different platforms. This dual system could complicate tax reporting and payment processes, making it difficult for taxpayers to meet their obligations efficiently.
Ultimately, the uncertainty surrounding the Coretax rollout may hinder trust in the tax administration, prompting calls for clearer communication and support from the government.
Government’s Response and Future Plans
In response to the challenges surrounding the Coretax implementation, the Directorate General of Taxes has decided to revert to the previous tax systems, including DJP Online and e-Faktur Desktop, to ensure that taxpayer services remain uninterrupted.
This strategic move aims to provide a familiar and reliable framework for taxpayers while the Coretax system undergoes necessary refinements. Importantly, Coretax will still be operational alongside these traditional systems, allowing taxpayers to choose the method that best suits their needs.
Additionally, the Directorate General of Taxes is committed to not imposing penalties on taxpayers affected by disruptions in the implementation of the Coretax system in 2025. This commitment reflects the government’s understanding of the challenges faced by taxpayers during this transition period.
Furthermore, the Directorate General will regularly report on the progress of the Coretax system to Commission XI of the DPR RI, ensuring transparency and accountability. Through these measures, the government aims to maintain taxpayer trust while advancing its tax administration capabilities.
Balancing Innovation and Reliability
The rollout of the Coretax system represents a significant advancement in Indonesia’s tax administration, yet its implementation has faced notable challenges. While the Directorate General of Taxes has wisely opted to reinstate traditional systems like DJP Online and e-Faktur Desktop while keeping Coretax operational, it is crucial to prioritize system quality over a rushed implementation.
Ensuring that the Coretax system is fully functional and reliable should take precedence to avoid disruptions in taxpayer services. This balanced approach not only supports taxpayers during the transition but also reinforces the government’s commitment to delivering an effective and trustworthy tax administration in the long run.
Need help navigating tax systems during this delay? While the Coretax system implementation faces setbacks, tax compliance remains crucial for individuals and businesses.
Seven Stones Indonesia’s expert team can guide you through these challenges, ensuring accuracy and efficiency. Contact us today to learn how our tax and accounting services can support you.
Source: bisnis.com
Image: Getty Images
