Indonesia's Tax Authority Tightens Supervision on Large Taxpayers Through Coretax and Risk Profiles
Executive Summary
Key insights and market outlook
Indonesia's Directorate General of Taxes (DJP) is enhancing compliance monitoring for large taxpayers through its new Coretax system and risk profiling. The system automatically validates tax reports, preventing submission if previous period reports are outstanding. This automated compliance mechanism aims to improve tax compliance and reduce evasion.
Deep Dive Analysis
Indonesia Strengthens Tax Compliance Monitoring for Large Taxpayers
Enhanced Supervision Through Technology
The Directorate General of Taxes (DJP) has implemented a more stringent supervision mechanism for large taxpayers through its Coretax system and risk profiling. Director General Bimo Wijayanto explained that the DJP now employs 'compliance by design' to ensure automatic tax compliance through system validation.
Key Features of the New System
- Automated Validation: The system prevents taxpayers from submitting their monthly VAT returns if they haven't filed previous reports.
- Risk Profiling: Enhanced risk assessment capabilities to identify potential non-compliance.
- Real-time Monitoring: Immediate detection of reporting discrepancies.
Implementation and Impact
The new mechanism was explained during a meeting with Commission XI of the DPR on November 26, 2024. By automating compliance checks, the DJP aims to significantly reduce tax evasion and improve overall compliance rates among large taxpayers. This technological advancement in tax administration demonstrates Indonesia's commitment to improving its tax ecosystem.
Source References
Story Info
Topics Covered
Key Events
Implementation of Coretax System
Enhanced Tax Compliance Monitoring