Indonesian taxation is improving by presenting advanced technology in its operations. The Directorate General of Taxes at the Ministry of Finance (Kemenkeu) is working on updating the core tax administration system (PSIAP) or CTAS. This new system is claimed to have advanced technology.
This core tax update is targeted to be completed by the end of this year and can be fully implemented on January 1, 2024.
This new core tax system will later shift 21 business processes of tax services from manual to technology-based automatic.
The automation of business processes is the management of tax returns (SPT), document management system (DMS), taxpayer services, assessment services, supervision, extensification, tax collection, investigations, objections, and appeals.
Expert Staff for Tax Regulation and Law Enforcement Iwan Djuniardi explained that the core tax system is part of the tax administration reform which is currently still ongoing.
“Business processes without information technology do not work,” he added.
The administrative system updates include organization, human resources, laws, and regulations, business processes, as well as information technology and databases.
“The change in IT is becoming more advanced. Because the future business concept is data-driven, that is the locomotive. The core of the business process at DGT is to become a data-driven organization,” explained Iwan.
Based on Presidential Regulation Number 40 of 2018 concerning Tax Administration System Reform, core tax is a technology system update that provides integrated support for the implementation of DGT’s duties.
The reform of the tax administration system will also cover the organization, human resources, laws and regulations, business processes, and information technology and databases.
as stated in Perpres 40/2018. The purpose of building this core tax system is to create a strong, credible, and accountable tax institution that has effective and efficient business processes.
In addition, other objectives of the core tax system are to build optimal synergies between institutions, increase taxpayer compliance, and increase state revenues.
With this core tax system in the future, said Iwan, there will be no manual recording of tax administration or inspection by humans.
“So how can there be minimal intervention from humans in the input data process, the data is digital.”
Iwan stated that the benefits of this core tax system are that people can complete business processes only through their gadgets quickly and practically.