Indonesia's Directorate General of Taxes (DGT) has officially implemented the Core Tax Administration System (Coretax) as of January 1, 2025. This initiative aims to modernize tax administration through digital integration, enhancing efficiency, transparency, and compliance for taxpayers across the country.

Since its launch, Coretax has encountered technical issues, including system crashes and data mismatches, disrupting business operations and causing frustration among taxpayers. In response, the DGT has decided to operate the previous tax system in parallel with Coretax to maintain tax administration services.

This decision was made following a meeting between the DGT and the House of Representatives' Commission XI. The DGT emphasized that the implementation of Coretax should not hinder tax revenue collection. To mitigate the impact on taxpayers, the DGT announced that no penalties would be imposed for late filings caused by system disruptions.

The Coretax system was developed by a consortium that includes South Korea's LG CNS and Qualysoft Group, with a total investment of 1.2 trillion rupiah (approximately $73.44 million). Despite this investment, the system has faced substantial challenges since its deployment.

In collaboration with the parliamentary financial commission, the DGT plans to create a roadmap to address the ongoing issues with Coretax. The objective is to refine the system to meet its goal of modernizing Indonesia's tax administration and improving taxpayer compliance.

The DGT has advised taxpayers to use the old tax system while Coretax issues are being resolved. Updates regarding the system's status will be communicated promptly to taxpayers.

SOURCE: TEMPO, BISNIS | PHOTO: IST

This article was created with AI assistance.