Indonesia is set to revolutionize its tax administration with the launch of the Core Tax Administration System (CTAS) in January 2025.
Announced by Finance Minister Sri Mulyani Indrawati, this ambitious initiative aims to enhance efficiency and transparency across all tax-related processes.
Reduce Tax Avoidance
Finance Minister Sri Mulyani Indrawati has confirmed that Indonesia will implement the Core Tax Administration System (CTAS) in January 2025. The implementation of this integrated tax system is an effort to increase efficiency and transparency in tax administration.
The benefits of using Core Tax include that all tax services, starting from registration, reporting, and payment to other tax needs such as submitting tax bookkeeping requests, confirming taxable entrepreneurs, and others, can be within an integrated and continuous system, which is easy, efficient, and accessible.
This system aims to simplify the tax reporting and payment process, as well as increase taxpayer compliance. With the Core Tax, it is hoped that there will be an increase in state revenue from the tax sector and a reduction in tax avoidance practices.
“Essentially, for the Core Tax, we will remain focused on launching early next year (2025). However, some stages may be updated separately, such as the readiness of the Directorate General of Taxation and the taxpayers themselves, which needs to be maintained properly to avoid disruptions,” said Sri Mulyani in a press conference at the Ministry of Finance on Friday, November 8, 2024.
Test Drive with Core Tax Simulator
Director General of Taxes of the Ministry of Finance, Suryo Utomo, revealed that as of November, the preparation before implementing the Core Tax system is at the Operational Acceptance Testing stage.
To educate the public and help them better understand the various features of Coretax, the Directorate General of Taxes has released an interactive simulator on the DJP Online website since late September 2024.
“We have prepared a simulation for taxpayers who wish to simulate how to administer or transact taxes using the core tax system. It is highly recommended. Until the end of 2024 and beyond, we will continue to provide education to everyone involved in the implementation of the Core Tax,” explained Suryo.
Some features in the Core Tax Simulator service that taxpayers can access through their DJP Online accounts include registration, tax payments, annual tax return reporting, tax invoice creation, and trial of the tax deposit menu and Taxpayer Account Management (TAM).
To access this simulator, taxpayers must register on the DJP Online account homepage. Upon successful registration, the system will send a notification to the email address registered on the DJP Online account. The notification, which includes a link, username, and password to access the simulator, will be sent within a maximum of three working days.
Confirm the Accuracy
This innovative Core Tax system will utilize pre-populated data services to automatically generate withholding or tax collection evidence, significantly simplifying the Annual Tax Return process.
Suryo also added that this pre-populated data service specifically for corporate taxpayers is intended for those issuing withholding or tax collection evidence to other parties.
Under this pre-populated scheme, data on tax deductions and/or collections by third parties (tax collectors) is automatically presented in the electronic Annual Tax Return (e-filing) for taxpayers.
Based on the pre-populated data, taxpayers only need to confirm its accuracy. According to Suryo, this makes the process of filing the Annual Tax Return faster, easier, and more accurate.
“The report submission time will also be auto-generated by the system, and taxpayers only need to verify whether everything has been reported. This is the convenience that may be offered when CTAS is implemented,” he emphasized.
Overcome the Tax Challenges
While the new Core Tax system aims to streamline tax report processes, its implementation can still be challenging both for individuals and businesses/corporates. Seven Stones Indonesia’s experienced team of tax professionals can navigate these complexities, ensuring accurate and timely tax compliance.
In addition to our compliance services, we offer proactive tax planning and advisory services to help you optimize your tax position and maximize savings. Our team stays up-to-date with the latest regulations, ensuring you are always in the know and compliant.
Get in touch with Seven Stones today to learn more about how our comprehensive tax and accounting services can benefit you. Join our WhatsApp Community via this link for real-time updates on Indonesia’s new regulations and policies, and stay ahead with our expert guidance.
