Post-Coretax: 14 Taxpayer Registration Procedures Changed, Here is the Details

The Directorate General of Taxes (DGT) has confirmed that following the launch of the Core Tax Administration System, known as Coretax, the taxpayer registration process will undergo significant changes.

These changes aim to provide ease and convenience for taxpayers, one of which is the expansion of taxpayer registration channels. For example, registration can now be done through the OSS (Online Single Submission) system and the General Legal Administration System (AHU).

In addition to the expanded registration channels, there are other important changes in the registration process that taxpayers should be aware of. 

Read: Coretax Simulator Launched: Experience the New Advanced Tax System!

Why is it important for taxpayers to understand the registration process? Because Taxpayer Registration is the first stage in a series of taxpayer administration processes. 

Through registration, taxpayer data will be collected to form a database that can be used by DGT. With the database, DGT will be able to identify and data all taxpayers, both Individuals, Entities, and government agencies. 

One of the outputs of the registration process is the issuance of a Taxpayer Identification Number (TIN). However, there are six activities contained in the taxpayer registration business process.  

The taxpayer registration process includes; registration of taxpayers, confirmation of VAT-Registered Person (PKP), registration of land and building tax objects (L&B tax), determination of registration locations, changes in data and taxpayer status, and deletion and revocation.

Changes in the Registration Process in Coretax  

In general, there are 14 changes that occur in the taxpayer registration business process through the use of Coretax, as quoted from the ‘Individual Taxpayer Registration Module’ published by the Directorate General of Taxes (DGT), as follows.

1. Registration Channel

Previously, before Coretax, all taxpayer registration services were carried out at the Tax Office, by post, digital channels, other channels and Kring Pajak.

However, the use of other channels is still limited. Therefore, with Coretax, these will be expanded. Later, taxpayer registration can also be done through the Online Single Submission (OSS) system for business actors. 

While for business entities and legal entities can use the General Legal Administration (AHU) system, and for all types of taxpayers can be through the Application Service Provider (PJAP).

2. Registration Location 

So far, taxpayer registration has only been done through the tax office according to the taxpayer's address. However, with Coretax, registration can be done at any tax office unit.

3. Data Validation

Before using Coretax, taxpayer validation was limited. Therefore, the validity of the registration data could not be ensured.  However, with Coretax, taxpayer data validation can be done through the data ownership agency, as a single source of truth (such as Dikcapil).

4. TIN Digit Count

Before Coretax, taxpayers used a TIN consisting of 15 digits. With the implementation of Coretax, the TIN now consists of 16 digits.

5. Individual Taxpayer Identity

Previously, the specific tax identity for individuals was the 15-digit TIN, which was not widely integrated with other data sources. 

However, with the introduction of Coretax, the tax identity for Individual Taxpayers is now the Population Identity Number (NIK), which serves as the TIN. 

DGT stated that NIK is an identity that has been used by many third parties, so it can improve integration and facilitate data exchange.

6. Taxpayer Profile

Previously, the taxpayer profile column was limited to displaying information only about the individual or entity that registered. Other taxpayers’ profiles were not visible.

This made it challenging for tax officers to detect relationships between parties and to create risk profiles.

In Coretax, the Taxpayer Profile will now also display other family data as a unit or Family Tax Unit. Not only family, but other relations such as management and capital ownership will also be available in the Taxpayer Profile.

7. Confirmation of VAT-Registered Person 

Prior to Coretax, the process of confirming a VAT-registered person did not fully consider the taxpayer’s risk profile. With Coretax, the confirmation of a taxpayer as VAT-Registered Person is directly integrated with the system for creating tax invoices and filing VAT returns (SPT PPN).

Read: Waiting for Coretax to Launch, DGT Delays the VAT Centralization by Position

8. Branch Taxpayer Identity

After Coretax comes into effect, Branch Taxpayers will be given the Identity Number of Place of  Business Activities (NITKU) which will be linked to a single central TIN. This facilitates administration and allows for other simplifications, such as centralizing the reporting and payment of tax returns and VAT.

Previously, Branch Taxpayers registered to obtain a Branch TIN to the tax office according to the domicile of the place of business. In addition, the branch TIN is not integrated with the central TIN.

9. Automated Registration by Position

With Coretax, processes like registering a TIN or updating data, are carried out automatically through the system based on the results of related business processes.

These related business processes include activities such as tax extensification, supervision, audits/investigations/preliminary evidence, objections/appeals, non-objections, intelligence, and others.

10. Integrated Geotagging

With Coretax, DGT will integrate geographic or location information into digital data (Geotagging) with the business process of registration and data changes. Previously, Geotagging data has not been integrated with the registration business process and has not been applied to all types of taxpayers and can only be done by the tax authorities.

Read: DGT Opens Opportunity for NIK-NPWP Matching until Year-End

11. Information for new taxpayers

After Coretax, newly registered taxpayers will receive a starter pack via e-mail containing information on their rights and obligations. This feature was not available before. Thus, taxpayers often do not know their tax rights and obligations.     

12. Registering More than 1 KLU

The use of Coretax also allows taxpayers to include more information or multiple fields. 

Such as listing more than one Business Classification (KLU), all addresses including the Indonesia Identity Card (KTP), domicile, correspondence, and business activities, as well as more than one contact details such as email and phone number.

Meanwhile, so far, taxpayers can only register for one KLU, one main address, and one contact detail in SIDJP.

13. No Longer Use EFIN

The implication of using Coretax also makes the use of the Electronic Filing Identification Number (EFIN) no longer relevant. Because DGT will no longer issue EFIN as part of the taxpayer account validation process. 

The EFIN is a special identity for taxpayers so that they can conduct electronic transactions, such as submitting the Annual Income Tax Return (SPT) through e-Filling.

With Coretax, the existence of EFIN will be replaced by the face recognition feature. The elimination of EFIN is one of the changes after the implementation of Coretax in the taxpayer registration process.

14. Self-Service

With Coretax, taxpayers can print their tax documents from the Taxpayer Portal. In addition, data changes can also be made by themselves in the Taxpayer Portal using the document upload feature.

So far, to print documents, taxpayers need to come to the Tax Office or wait for the Tax Office to send documents. Likewise, data changes can be made directly at the Tax Office or send files through the Post or limited information centers. (ASP/KEN)