Modernization of Indonesia’s Tax Service System through the Core Tax Administration System (CTAS)
- October 9, 2024
- Posted by: Administrator
- Category: Tax Updates
The Core Tax System or Pembaruan Sistem Inti Administrasi Perpajakan (PSIAP) will facilitate compliance for taxpayers and be supervised by the Directorate General of Taxes (DGT). The launching of the Core Tax System was first outlined in Minister of Finance Decree Number 483/KMK.03/2020. The digitalization enhancement will increase the automation of all tax administration services, allowing taxpayers to see a 360-degree review of all their tax information. The benefits of enhancing services through the implementation of the Core Tax System include:
- Increased Efficiency: More effective and efficient DGT business processes, creating a strong and accountable institution
- Enhanced Data Accuracy: Increased synergy between agencies;
- Economic Growth: Potentially increasing state revenue and the tax ratio, enabling increased public spending on infrastructure and services, which supports economic growth;
- Better Monitoring and Enforcement: Assisting in the segmentation and profiling of taxpayers; and
- Cost Savings: Facilitating the analysis of taxpayer compliance in managing their tax obligations.
Some features of the Core Tax System service compared to the previous system are summarized as follows:
| Type of Tax | Prior Systems | Coretax |
| CIT | Reporting using e-Form downloaded from the DJP Online system. | Filling and Reporting is done by filling directly in the Core Tax System. |
| Value Added Tax | Creating Output and Input VAT Invoices via e-Faktur and reporting VAT Returns via web-based e-Faktur. | Filling and Reporting is done by filling directly in the Core Tax System. |
| Withholding Tax | Preparation of Tax Slips and WHT Returns via DJP Online. | The filling and reporting are done by directly entering the information into the Core Tax System. |
| Tax Collection | Notified in formal letter and sent to the registered address. | Notified through the menu in the Core Tax System. |
| SP2DK (Request for Explanation of Data or Information) | Notified in formal letter, sent to the registered address, and the response to the SP2DK is directly delivered. | Notified in the Core Tax System, and the response to the SP2DK is submitted through Core Tax System. |
| Tax Audit | For special cases, the disclosure of inaccuracies is done by the Taxpayer by submitting a written explanation to the Tax Office. | For special cases, the disclosure of inaccuracies is done through Core Tax System. |
| Deposit Pajak | None | There is an option to deposit balance for tax payment purposes. |
| ID Billing | Manual creating via DJP Online | Created automatically when a Tax Return has been drafted. However, there is also an option for manual creation. |
| Account Accessibility | Access to DJP Online, Web-efaktur and e-faktur can be done with one registered account each, except for the e-bupot for Article 21 Income Tax. | There is only one account that can access the Core Tax System. However, there is an option to create access accounts for employees and Attorneys. |
| Taxpayer’s Attorney | Only attach the Power of Attorney (PoA) when submitting the tax return. | It is necessary to register the Attorney to be inputted into the Core Tax System account. |
| Other Tax Administration:
·Registration of Taxpayer Identification Number (NPWP) ·Confirmation of Taxable Entrepreneur (PKP) ·Deletion of NPWP ·Revocation of Taxable Entrepreneur (PKP) |
Registration and application through the e-reg website or submitted directly to the Tax Office. | Registration and application via the Core Tax System. |