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Businesses decry new tax system as filing deadline nears

Fully implemented at the turn of the year, Coretax is a new tax administration system that is meant to tame Indonesia’s notoriously complicated taxation jungle, which can then translate into improved compliance and increased revenue.

Deni Ghifari (The Jakarta Post)
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Jakarta
Fri, January 31, 2025

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Businesses decry new tax system as filing deadline nears Pay your due: Palembang Ilir Barat Tax Office employees serve taxpayers submitting their annual tax returns on Feb. 29, 2024. (Antara/Nova Wahyudi )
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I

ndonesian businesses have expressed frustration about the many problems they have encountered with the newly rolled out digitalized taxation administration system called Coretax.

Indonesian Taxpayers Association (IWPI) chairman Rinto Setiyawan said on Sunday that many businesses were facing serious technical issues that led some to the brink of operational closure.

“Some called me the other day; their [businesses] are about to be closed because they can’t generate invoices [and thus] they can’t collect [payments],” Rinto was quoted as saying by Kontan.

Fully implemented at the turn of the year, Coretax is a new tax administration system that is meant to tame Indonesia’s notoriously complicated taxation jungle, which can then translate into improved compliance and increased revenue.

However, businesses have reported that the system is not fit for purpose. One unspecified business in South Jakarta, for instance, expressed frustration as Coretax was often unstable and only caused trouble for businesses, according to a report compiled by the IWPI.

Another business from the manufacturing sector said that Coretax often ended up loading blank pages or responding slowly, which ate up time.

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Indonesian Employers Association (Apindo) taxation committee chairman Siddhi Widyaprathama said on Jan. 23 that the new system was promising compared with the existing ones, but the scale of the problems had become a headache for businesses, as quoted from Kontan.

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