| Regulatory Code |
Ministry of Finance Regulation No. 81 of 2024
|
| Title |
Tax Provisions for the Implementation of Core Tax Administration System
|
| Issuance Date |
18th of October 2024
|
| Link |
Download |
- Ministry of Finance (MoF) Regulation No. 81 of 2024 (MoF Reg. 81/2024) was issued on the 18th of October 2024, and effective as of 1 January 2025. This regulation is the basis for the Core Tax Administration System (CORETAX) launched by the Directorate General of Tax (DGT), where the system accommodates taxpayers’ fulfilment of taxation rights and obligations through online basis.
- Scope of MoF Reg. 81/2024. MoF Reg. 81/2024 regulates the following scope:
- Procedures of (a) implementing taxation rights and obligations through online basis; (b) Taxpayer registration, taxable entrepreneur confirmation, and property tax object registration; (c) Tax payments and refunds; (d) delivery and submission of tax returns; (e) tax administration services;
- Technical provisions for Core Tax Administration System implementation; and
- Several document formats, as well as examples on tax calculation, withholding and/or reporting. With the new procedures under CORETAX, MoF Reg. 81/2024 amend and/or replaces several previous regulations, as detailed under Articles 479 up to 483 of the said regulation. However, MoF Reg. 81/2024 does not change the principles of General Tax Provisions.
- Electronic Submission by Taxpayer. Principally, all tax related administration services remain the same, but the process will be done almost entirely online through CORETAX (incl. taxpayer registration and taxable entrepreneur confirmation process). However, taxpayers may use the conventional method to submit their obligation to DGT/Tax Office (direct submission, or through postal/courier services), IF:
- The infrastructure in the taxpayer’s domicile is not yet available;
- Technical problem in taxpayer’s communication system or facility; and
- In case of disaster.
- Electronic Documents from DGT/Tax Office. All documents, letters and written instruments from the DGT and/or Tax Office will be conveyed through CORETAX (incl. Tax Collection Letter/Note, Warning Letter, Decision Letters, Certificates, Assessment Letters, etc.). If documents from DGT and/or Tax Office are conveyed in electronic form, then the documents are no longer issued in hard copy (paper). MoF Reg. 81/2024 provides details on the types of documents issued electronically, as well as the time and date assumed for such document to be issued and/or received.
- Tax Deposit for Tax Payment/Refunds. MoF Reg. 81/2024 also introduced the “Tax Deposit” in CORETAX, an e-wallet-like feature where taxpayers may at top-up the Tax Deposit account anytime. The amount of tax deposit in the account can be allocated as payment for tax obligations through transfer (pemindahbukuan), and tax refunds could also be transferred to the Tax Deposit account if agreed by the taxpayer.
- Crediting Input VAT. Tax invoice can be credited in the same Tax Period as the issuance of such tax invoice. However, for certain documents equal to tax invoice (dokumen tertentu yang kedudukannya dipersamakan dengan faktur pajak), the VAT can be credited up to 3 (three) Tax Period after the issuance of such document.
- Due date for Tax Payment. The following taxes for a certain Tax Period are due and payable on the 15th date of the next month:
- Income Tax Articles 4(2), 15, 21, 22, 23, 25, and 26;
- Income tax for crude oil (minyak bumi) and/or natural gas from crude oil and/or natural gas upstream business activities paid every Tax Period;
- VAT upon utilization of intangible taxable object or taxable services from outside of the Customs Area (Indonesia);
- VAT for self-building activities;
- Stamp duty collected by the stamp duty collectors;
- Sales tax; and
- Carbon tax collected by the carbon tax collectors. There are also some payment due dates that are different for several taxes, as detailed under Article 94 of MoF Reg. 81/2024.
- Other technical changes. With the implementation of CORETAX, there are other technical changes to the procedures of tax administration system based on MoF Reg. 81/2024 and the CORETAX handbook, among others:
- CORETAX accounts and access – where corporate accounts can be accessed through individual accounts by impersonating as the PIC or attorney of such corporate accounts. Details of how a person can register, activate and access their accounts are stated in the regulation.
- Authorization codes and/or electronic certificate for processing documents through CORETAX.
- Tax Returns Data Imports with XML format – an update from the previously used CSV format, to increase data accuracy and integrity.
- Automated validation by CORETAX for several processes and applications.
DISCLAIMER: This publication contains general information and a summary of some tax regulations, which may be amended and/or replaced from time to time. This document is not a copy of the regulation(s) and serves only as a brief outline of the information stated in the regulation(s). Thus, this publication should not be solely used and relied on as a basis for any analysis, disputes, investigation, drawing conclusions, and/or decision-making purposes. No warranty is provided, and no liability is accepted for correctness, opinion, omission, or any variation to the interpretation in this publication. Should you need to analyze, dispute, investigate, conclude and/or determine any decision, please refer to the original laws and regulations, or contact us for more details.
