Guidelines for Providing Tax Administrative Services for the Implementation of the Core Tax System

The Directorate General of Taxes (DGT) has issued Regulation No. PER-8/PJ/2025 on Provisions for the Delivery of Certain Tax Administrative Services in the Context of Implementing the Core Tax Administration System (Coretax).

The primary objective of this regulation is to enhance transparency, efficiency, accountability, and legal certainty in tax administration, while also providing clear guidance to taxpayers regarding procedures related to the implementation of the Coretax system. The regulation outlines several key provisions, including:

• Under Regulation No. PER-8/PJ/2025, the implementation of Coretax provides significant improvements in the way taxpayers access tax administration services. One major improvement is the introduction of online application facilities via the Taxpayer Portal, allowing taxpayers to submit requests more efficiently, conveniently, and without time or location constraints.
• As part of the DGT’s efforts to modernize and improve the quality of tax services, taxpayers are now provided with streamlined procedures for submitting applications for a variety of administrative services. These services can be accessed electronically (via the Taxpayer Portal and the Contact Center) or submitted directly to the Tax Office where the Taxpayer is registered and include:
  1. 1. Tax Clearance Certificate (Surat Keterangan Fiskal or SKF)
     2. Change of bookkeeping method and/or fiscal year
     3. Bookkeeping in English and U.S. Dollars
     4. Application, notification, approval, cancellation, and reissuance of permission to maintain bookkeeping and records in English or bookkeeping in English and in U.S. Dollars
     5. Requests related to the use of book value for asset transfers in mergers, consolidations, spin-offs, or business takeovers
     6. Requests for revaluation of fixed assets for tax purposes
     7. Requests for exemption from withholding or collection of income tax by third parties
     8. Tax exemption certificates for Article 22 Income Tax on the import of gold bars to be processed into jewelry for export
     9. Tax exemption certificates for interest income from deposits, savings, and Bank Indonesia Certificates (SBIs) earned by pension funds approved by the Ministry of Finance or the Financial Services Authority (OJK)
     10. Income tax exemptions related to the sale or transfer of land and/or buildings, including sales of luxury residences in designated tourism-based Special Economic Zones (SEZs)
     11. Formal verification of fulfilment of income tax deposit obligations from property transfers or pre-sale agreements
     12. Certificates for the use of taxable services from outside Indonesia that are used domestically through importation
     13. Verification of fulfilment of tax compliance requirements for prospective regional head candidates

All applications submitted are subject to administrative review by the Directorate General of Taxes to verify completeness and compliance with regulatory requirements. If the application is deemed acceptable, the DGT will issue an approval decision; otherwise, a rejection notice will be issued.

The regulation includes official templates for various requests, including those for changes in bookkeeping methods or fiscal years.

• For applications submitted electronically via the Taxpayer Portal, the outcome will be communicated to taxpayers using one of the following methods:
  1. 1. Electronic notification displayed on the Taxpayer Portal, or
     2. Verbal notification provided through DGT’s official Contact Center.

Taxpayers are encouraged to actively monitor their application status through these available channels to ensure they receive updates.

• For certain types of applications – such as changes to the bookkeeping method and/or fiscal year, or the use of English language and Rupiah currency in bookkeeping – taxpayers are required to attach a valid Tax Clearance Certificate (SKF) as part of the submission.
• Regulation PER-8/PJ/2025 broadens the definition of eligible taxpayers who may apply for permission to use English and/or the U.S. Dollar as the basis for their bookkeeping and records. Newly included entities now cover:
  1. 1. Permanent establishments as defined in Article 2(5) of the Income Tax Law or relevant tax treaties
     2. Taxpayers directly affiliated with foreign parent companies, such as subsidiaries under common control as described in Article 18(4) of the Income Tax Law
     3. Taxpayers listing shares (partially or fully) on overseas stock exchanges
     4. Collective Investment Contracts issuing mutual funds denominated in U.S. Dollars and registered with the Financial Services Authority (OJK) or other agency authorized under legislation regarding the capital market
     5. Taxpayers presenting financial statements using U.S. Dollars as their functional currency in accordance with Indonesian accounting standards
     6. Taxpayers bound by government agreements that require the use of English and U.S. Dollars in bookkeeping
     7. Taxpayers engaged in joint operations, where the agreement or deed of establishment mandates English and U.S. Dollar bookkeeping, including:
        1. Joint operations where all members have obtained approval to use English and USD
        2. Joint operations where not all members have obtained such approval

• Article 146 on Transitional Provisions states that this Regulation of the Director General of Taxes revokes 27 (twenty-seven) previously issued regulations, which are hereby declared no longer valid.
• This regulation also provides detailed procedural guidance for submitting the applications mentioned above. While designed to facilitate and streamline taxpayer processes, these provisions remain fully aligned with existing tax laws and regulations, ensuring continued legal certainty.

This regulation came into effect on May 21, 2025.