Indonesia's Tax Modernization Efforts Lagging

Low Coretax Adoption Rate

The Indonesian tax authority, Direktorat Jenderal Pajak (DJP), reports that as of November 16, only 3.18 million out of approximately 14 million registered taxpayers have activated their Coretax accounts. This represents just 22.7% of the total registered taxpayer base. The Coretax system is a critical component of Indonesia's tax modernization efforts, designed to streamline and enhance the efficiency of tax reporting.

Breakdown of Registered Taxpayers

The 3.18 million registered Coretax users comprise 599,000 corporate taxpayers and 2.6 million individual taxpayers. Of the individual taxpayers, 1.6 million have completed the registration process, including obtaining digital signatures and authorization codes. This represents 11.92% of total registered individual taxpayers.

Government Push for Wider Adoption

To accelerate the adoption of Coretax, the DJP is collaborating with various government ministries and agencies. One key initiative is the requirement for all civil servants, military personnel, and police officers to activate their Coretax accounts by December 31, 2025. This mandate is expected to significantly boost registration numbers.

Importance of Coretax for Future Tax Reporting

The Coretax system is slated to become the primary platform for annual tax reporting starting in 2026. The successful implementation of this system is crucial for Indonesia's tax modernization efforts, aiming to make tax compliance more efficient and reduce administrative burdens on taxpayers.

Call to Action for Taxpayers

The DJP is urging all taxpayers, both individuals and corporations, to voluntarily register for Coretax. The registration process is designed to be straightforward, with clear guidelines available on the DJP website. By encouraging early adoption, the tax authority aims to ensure a smooth transition to the new system when it becomes mandatory for tax reporting in 2026.