Jakarta, Indonesia Sentinel — The Directorate General of Taxes (DJP) under Indonesia’s Ministry of Finance has announced a temporary waiver of administrative penalties during the implementation of its new tax administration system, Coretax. This measure aims to ease the burden on taxpayers as the system undergoes a transition period, which began on January 1, 2025.
Director General of Taxes, Suryo Utomo, emphasized the government’s commitment during a virtual discussion with the Indonesian Employers Association (Apindo). The event, attended by representatives from 100 business associations and over 1,000 participants online, sought to address concerns surrounding Coretax’s technical challenges.
“The DJP assures taxpayers that no additional administrative sanctions will be imposed for delays or errors in issuing tax invoices caused by technical issues with Coretax,” Suryo stated, as quoted from Apindo’s press release on January 15, 2025.
Unclear Transition Timeline
While the administrative sanctions waiver is in effect, the DJP has yet to specify an end date for the transition period. Suryo noted that further assessment is required to determine when the Coretax system will be fully operational.
“This transitional phase will be regulated through a Directorate General of Taxes Regulation (Perdirjen) to provide legal certainty for taxpayers,” he added.
Support for Businesses During Transition
Apindo representatives urged the DJP to prioritize support over enforcement during this period. Suryadi Sasmita, Secretary of Apindo’s Advisory Board, stressed the importance of fostering business continuity amid technical challenges.
“Businesses need assurance that they can continue their activities without fear of penalties during this transition, which is beyond their control,” Suryadi remarked.
He called for a cooperative approach, highlighting that ongoing guidance from the DJP would help businesses adapt to the new system while bolstering trust in the government.
Step-by-Step Guide to Accessing Indonesia’s Core Tax System
Addressing Coretax Issues
During the discussion, the DJP outlined several steps taken to resolve technical issues with Coretax. Key challenges include reporting under Article 26 Income Tax (PPh Pasal 26) for December 2024, which can still be processed using legacy applications such as e-Bupot PPh Pasal 21 or e-Bupot Unification.
Additionally, the DJP is expediting data migration processes to ensure seamless manual reporting. Efforts are also underway to resolve access problems faced by foreign taxpayers, particularly expatriate directors with Taxpayer Identification Numbers (NPWP) encountering difficulties obtaining electronic certificates.
Improvements in immigration data validation and Coretax systems are expected to provide easier and more secure access for foreign taxpayers.
Looking Ahead
The DJP’s temporary measures reflect its commitment to a smooth Coretax implementation while addressing taxpayers’ concerns. Business leaders and taxpayers alike await the finalization of the transition period, hopeful for a cooperative approach that fosters adaptation to the new system and strengthens confidence in Indonesia’s tax reforms.
(Becky)
