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Introducing Coretax System: All-in-One Banking Equivalent Tax Super App

Wednesday, 03 April 2024

Introducing Coretax System: All-in-One Banking Equivalent Tax Super App

JAKARTA. Indonesia's tax system will soon enter a new era, with the arrival of the Coretax Administration System(SIAP) which will replace the Directorate General of Tax Information System (SIDJP).

The government stated that Coretax System will provide various conveniences, through its various features that will automate various kinds of tax administration processes.

Expert Staff of the Minister of Finance Nufransa Wira Sakti said that the features that will be attached to it will make Coretax a tax Super App that is equivalent to the sophistication of banking applications.

Nufransa gave an example, one of the important features in Coretax is Taxpayer Account Management which presents tax information belonging to taxpayers comprehensively in one view. "For example, how much tax we have paid, how much tax is due, how much we owe, maybe there are tax bills and so on," said Nufransa, at the MUC BIJAK webinar, on Tuesday (2/4).

In fact, there will also be a ledger feature that records every taxpayer transaction, such as tax payments to the amount of tax payable in the form of Debits and Credits in Taxpayer Account Management.

Arif Yunianto, Associate Expert Instructor at the Directorate General of Taxes, highlighted that the Coretax system streamlines the taxpayer registration process. Unlike before, where separate applications like e-reg were necessary, Coretax simplifies the process significantly.

Likewise, the payment process will experience adjustments. Later, payments can be made through this Coretax system. In fact, one billing code can later be used for several types of taxes. Unlike the current situation, where one type of payment can only use one billing code.

With these innovative breakthroughs, Wahyu Nuryanto, Partner at MUC Consulting, expresses hope that Coretax will boost taxpayer compliance in Indonesia. Relying solely on the current system would make it exceedingly challenging for the government to fully leverage the existing tax potential.

Furthermore, the challenges of taxation in Indonesia are notably intricate. With one of the world's largest populations, Indonesia naturally boasts a significant number of taxpayers.

However, despite a total labor force in 2023 of 147.71 million individuals, only 70.3 million are registered as individual taxpayers. It's worth noting that the actual number of compliant taxpayers might be even lower.

Due to these facts, Wahyu also emphasized the importance of data security, considering that Coretax is an electronic system. Therefore, in addition to being dependable, Coretax must also ensure reliability.

Overview of MUC BIJAK

MUC BIJAK, short for MUC Bicara Pajak (MUC BIJAK), is a public education and informal tax discussion initiative aimed at making taxation accessible and relevant to all. The program endeavors to ensure that tax matters are not confined to certain circles but are instead open for discussion by diverse groups.

Through the #BIJAK program, our goal is to enhance public understanding, awareness, and compliance in taxation, thereby positively contributing to state revenue. The BIJAK program offers various discussion formats, both offline and online.

To tune in to the latest BIJAK MUC episode titled "Observing the Tax Business Process Update in Coretax and its Implications for Taxpayers," simply click on the following link: 

https://www.youtube.com/watch?v=dmcM_fjc5cc



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