Jakarta, Indonesia Sentinel — The Indonesian government will officially implement the Core Tax Administration System (CTAS) in January 2025. This modernization Core Tax System initiative aims to streamline tax administration, improve compliance, and enhance taxpayer convenience.
Director General of Taxes Suryo Utomo confirmed the timeline during a press conference on September 23, 2024. “God willing, by the end of 2024, we can use the core tax system starting January 1, 2025.”
Targeted Training for Large Taxpayers
To prepare for the system’s launch, the Directorate General of Taxes (DGT) has conducted targeted education and training for significant taxpayers, particularly those with high transactional volumes. A total of 52,964 taxpayers, classified as large taxpayers, will receive hands-on education to adapt to the system.
“Large taxpayers will be the most impacted by the core tax implementation, so we are prioritizing their readiness,” said Suryo.
Rising Demand for a Modern Tax System
Finance Minister Sri Mulyani Indrawati emphasized the pressing need for tax system modernization due to the growing number of taxpayers and transaction documents. Registered taxpayers have risen from 33 million in 2018 to 70 million in 2024, while e-invoice documents have more than doubled from 350 million to 776 million during the same period.
Sri Mulyani highlighted that CTAS is based on the Commercial Off-The-Shelf (COTS) model, a globally proven approach for developing advanced tax systems.
Automation and Transparency Core Tax System
CTAS aims to digitize and automate tax services, making the system more accessible for taxpayers. Features include self-service platforms, automated tax return submissions, and a 360-degree view of tax accounts. The automation will not only simplify compliance but also boost transparency and reduce the risk of errors.
“The system ensures faster, real-time services while improving accuracy and fairness in enforcement,” Sri Mulyani noted.
The platform will provide the DGT with a reliable database for data-driven decisions, enhancing taxpayer compliance and potentially increasing Indonesia’s tax-to-GDP ratio.
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Public Access via Interactive Simulator
To support this transition, the DGT launched an interactive simulator for CTAS on its official website on September 23, 2024. This tool allows taxpayers to explore the system’s features and functions in a hands-on manner.
Taxpayers must register through the DJP Online portal to access the simulator. Registration credentials, including a username and password, are sent via email within three business days.
The simulator is accessible online, allowing users to familiarize themselves with the system anytime, anywhere.
A Leap Toward Modern Tax Administration
The implementation of CTAS reflects Indonesia’s commitment to leveraging technology for better governance. By automating processes, enhancing transparency, and improving accessibility, the system aims to transform Indonesia’s tax landscape, ensuring it is both taxpayer-friendly and efficient.
(Becky)
