Coretax Platform Expected to Overhaul Tax Collection Scheme

The presence of the Coretax platform is expected to enable a change in the Income Tax (PPh) collection scheme. This was conveyed by the Chairman of the Tax Payer Community, Abdul Koni. He stated that Coretax allows the Directorate General of Taxes to conduct real-time supervision through data integration, transaction matching, automatic risk analysis, and taxpayer profiling. Koni proposed a Direct Tax Settlement model, a mechanism where the income recipient calculates, pays, and reports their own tax, while the income provider simply reports the transaction. Coretax would then automatically perform data matching and risk-based supervision. According to Koni, this approach would simplify tax administration, lower compliance costs, increase legal certainty, and reduce disputes that have often been triggered by administrative issues in tax withholding. He stressed that a good tax system not only generates state revenue but is also collected fairly, transparently, and on target, without creating uncertainty or a disproportionate burden for taxpayers. “In the Coretax era, the state’s main function should shift from forcing third parties to collect taxes to directly monitoring taxpayer compliance through technology. A good tax is one collected fairly, transparently, and on target, and accepted by the public as a form of mutual cooperation to build an advanced and prosperous Indonesia,” Koni concluded. With the development of Coretax technology, the administrative burden that has been borne by companies as tax withholders needs to be evaluated, as the current mechanism also has the potential to cause administrative errors and tax disputes.