Coretax Implementation Delayed to end of 2024

Government reveals Coretax implementation delayed to end of 2024 , The Directorate General of Taxes (DGT) will carry out the deployment of the core tax administration system (PSIAP) update or coretax administration system (CTAS) by the end of 2024. Expert Staff of the Minister of Finance for Tax Supervision, Nufransa Wira Sakti, revealed that the DGT is currently conducting testing through system integration testing (SIT) and functional verification testing (FVT).

After this testing phase is completed, the DGT will proceed to the next activity, namely the user acceptance test (UAT). Nufransa explained that after UAT, coretax deployment is planned to be carried out at the end of 2024. This was conveyed in a meeting with Commission XI of the House of Representatives on Monday, 10 June 2024.

While conducting testing and preparing for deployment, DGT is also conducting internal training for its employees. In addition, the data migration process from the old system to coretax is also ongoing. According to Nufransa, in 2025, DGT will focus on post implementation support which includes system maintenance and repair if there are errors or bugs. Application developers will be responsible for these improvements.

This year, the budget used by DGT for the implementation of a series of tests, data migration, and initial deployment of coretax reached Rp311.46 billion. For next year, DGT proposes a budget of IDR201.74 billion for the implementation of coretax. This budget plan includes the main activity, namely post implementation support, which aims to ensure the system runs smoothly and perform maintenance if needed.

Coretax is a new information technology system designed to update and manage various aspects of tax administration. The system was created in accordance with the provisions in Presidential Regulation No. 40/2018, which regulates the renewal of the tax administration system in Indonesia. The implementation of this system will change at least 21 business processes in tax administration. The processes that will undergo changes include registration, tax return management, payment, and taxpayer account management (TAM).

Coretax Implementation
Coretax Implementation

Read also:

In addition, taxpayer services, third-party data processing, exchange of information (EoI), data quality management (DQM), document management system (DMS), and business intelligence (BI) will also be affected. Other business processes that will experience changes are compliance risk management (CRM), assessment, supervision, extensification, examination, billing, intelligence, investigation, objections and appeals, non-objection, and knowledge management systems.

Coretax is expected to improve the efficiency and effectiveness of tax administration in Indonesia. With the implementation of coretax, the DGT aims to provide better services to taxpayers and improve transparency and accountability in tax management. In addition, coretax will support DGT in better managing data and enabling more in-depth data analysis through enhanced business intelligence capabilities.

This digital transformation is also expected to strengthen the tax monitoring system and improve compliance risk management. With better compliance risk management (CRM), DGT can

and handle compliance risks more efficiently. In addition, the new system will simplify the process of registration and management of tax returns, so that taxpayers can more easily fulfil their tax obligations.

Migration to the coretax system also requires special attention to change management to ensure that all parties involved can adapt well to this change. Therefore, the internal training that is being implemented by the DGT is very important to ensure that DGT employees are ready to use and manage this new system effectively.

This coretax update demonstrates the Indonesian government’s commitment in strengthening the tax system and improving the quality of service to taxpayers. With the implementation of this system, DGT hopes to achieve increased tax compliance, better data management, and ultimately, more optimised tax revenue.

NITKU will take effect at the same time as Coretax

The use of the Business Activity Identity Number (NITKU) will begin simultaneously with the implementation of the core tax administration system (CTAS). This topic was featured in the national media on Thursday, 6 June 2024. Director General of Taxes Suryo Utomo explained that NITKU is prepared to support the coretax system. Therefore, its implementation will wait for the readiness of the coretax system implementation.

NITKU is an identity number for a taxpayer’s place of business activity that is separate from the taxpayer’s residence or domicile, consisting of 22 digits that include 16 digits of NPWP and 6 digits of branch serial number. Suryo stated that NITKU will be used in the context of coretax, similar to the use of the 16-digit NPWP for branches, and its implementation is being prepared to be done in conjunction with coretax.

DGT is currently preparing regulations related to NITKU, considering that many regulations currently only contain provisions for branch TINs and do not include NITKU. For example, DGT Regulation Number PER-04/PJ/2020 still regulates the branch TIN without including provisions on NITKU. This regulatory harmonisation process is important so that the implementation of coretax and NITKU can run smoothly and in accordance with applicable regulations.

As such, the planned deployment of coretax by the end of 2024 and the various preparations being made by the DGT represent a step forward in the digital transformation of tax administration in Indonesia. The government and DGT continue to strive to ensure that the new system will provide maximum benefits to all stakeholders, including taxpayers and the public at large.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top