Indonesia's DJP Launches Coretax: A New Era in Tax Administration

Modernizing Tax Reporting

The Directorate General of Taxes (DJP) has officially launched Coretax, a comprehensive tax administration system, marking a significant step in Indonesia's tax digitalization journey. This new system is designed to integrate all core tax administration processes, including taxpayer registration, tax return filing, tax payment processing, and tax audits.

Key Features and Benefits

Coretax promises to bring substantial improvements to the tax reporting landscape:

1. Integrated Tax Administration: Combines all tax processes into a single platform
2. Enhanced Data Accuracy: Provides taxpayers with pre-filled tax data including withholding information and asset/liability details
3. Improved Efficiency: Reduces reliance on manual processes and paperwork
4. Better Compliance: Enables real-time data sharing and verification

Implementation Timeline

• January 1, 2025: Coretax system became operational
• 2025 Tax Year: Transitional period for taxpayers to adapt
• 2026: Mandatory reporting through Coretax for all taxpayers registered from 2025 onwards
• Existing taxpayers (pre-2025): Still allowed to use DJP Online for 2024 tax year reporting

Impact on Taxpayers

The new system requires taxpayers to activate their accounts and obtain authorization codes before using Coretax services. While there's no strict deadline for activation, taxpayers are encouraged to register early to avoid last-minute complications when filing their 2025 tax returns by March 31, 2026.

Challenges and Considerations

1. Data Accuracy: Taxpayers need to verify pre-filled asset data as it may require detailed updates
2. System Adaptation: Businesses must train staff on the new reporting system
3. Technical Preparedness: Ensuring compatibility with various digital devices and internet connectivity

The implementation of Coretax represents a significant step forward in Indonesia's tax administration, promising a more efficient, transparent, and modern tax reporting ecosystem.