Change in taxation often brings anxiety, but Indonesia’s core tax administration system aims to bring clarity instead.
Understanding how this system works can help businesses stay compliant and operate with more confidence in the future. Keep reading to see what’s changing and how it can actually simplify the way you handle taxes.
Why Indonesia Is Overhauling Its Tax System
Indonesia is modernizing its tax system to fix long-standing inefficiencies and bring it up to global standards.
That’s why in January 2025, the government launched the Core Tax Administration System (CTAS), a fully digital platform that unifies every major tax process into one connected ecosystem. From registration and filing to payments and audits, everything now runs in real time.
The reform is designed to create a more predictable, transparent, and equitable tax system that fosters trust between taxpayers and authorities while also boosting government revenue collection capacity.
What is the Core Tax Administration System (CTAS)?
Source: Freepik
Indonesia’s Core Tax Administration System (CTAS) is a new digital platform introduced by the Directorate General of Taxes (DJP) in January 2025.
At its core, CTAS brings all major tax activities together in one connected ecosystem, so businesses no longer need to deal with separate systems or manual paperwork.
Here’s what it does:
- Automates most tax processes to save time and reduce human error.
- Connects data between government agencies for better accuracy and mentoring.
- Simplifies registration, reporting, and payment so taxpayers can do it all more easily.
- Supports smart policymaking with digital tools and real-time data.
The system is backed by Minister of Finance Regulation No. 81 of 2024 (PMK-81), which unifies older tax rules into one digital framework. This helps create a fairer and more predictable environment for businesses.
The Role of PER-11/PJ/2025 in Making CTAS Work
To make Indonesia’s Core Tax Administration System (CTAS) run smoothly, the government introduced PER-11/PJ/2025 in May 2025. This regulation defines how taxpayers report, file, and manage their taxes in the new digital system, including Income Tax, Value Added Tax (VAT), Luxury Goods Sales Tax, and Stamp Duty.
Here’s what PER-11/PJ/2025 does in practice:
- Sets clear reporting standards for all tax types.
- Unifies older rules by replacing 25 outdated regulations and updating 2 others.
- Introduces digital reporting formats aligned with CTAS.
Most importantly, PER-11/PJ/2025 makes it easier for companies to adapt to CTAS without getting lost in bureaucracy. This clarity helps businesses avoid confusion, reduce compliance risks, and save time.
How does the Core Tax Administration System Work?
Here’s how the CTAS works in practice:
- Taxpayers must report and submit all documents digitally, including returns, withholding slips, and attachments, through Coretax.
- The regulation defines how to report income tax, VAT, and other obligations using Coretax.
- Coretax processes all submitted data instantly, performing automated checks to ensure compliance and accuracy.
- Users can access Taxpayer Account Views and Transaction Ledgers to monitor filings, payments, and obligations in real time
How CTAS Makes Business Tax Reporting Easier
The Core Tax Administration System (CTAS) brings several practical improvements that reduce complexity and save time, such as:
- Simpler filing, now businesses can report all taxes (income, VAT, luxury goods, stamp duty) in one digital portal.
- Faster processing since real-time data checks and automated validations speed up submissions, so tax receipts are issued faster and payment statuses are clear.
- Lower compliance risks because automated reminders and alerts help businesses meet deadlines and comply with reporting requirements.
- Businesses can access their tax records anytime, monitor obligations, and make informed decisions.
Together, these improvements will reduce administrative burdens, lower compliance costs, increase reporting accuracy, and create a smoother, more predictable tax reporting experience for businesses in Indonesia.
Key Deadlines Every Business Should Know
The key deadlines for business tax reporting in Indonesia in 2025 are:
- Annual Corporate Income Tax Return (SPT 1771): Due by April 30, 4 months after the fiscal year end, typically December 31. This deadline applies even if the company was inactive during the year.
- Monthly Tax Payments: Due by the 15th of the following month. This includes withholding taxes (such as PPh 21, PPh 23), corporate income tax installments (PPh 25), and VAT payments.
- Monthly Tax Return (SPT Masa): Due by the 20th of the following month and must be filed electronically through the Coretax system. This applies to monthly returns for income tax, VAT, and luxury goods sales tax.
- VAT Returns: Generally due by the end of the month following the reporting period. VAT payments must precede the return filing date.
Failure to meet these deadlines may result in fines from IDR 1,000,000 for late filings to criminal liability for severe negligence.
For more information about Indonesia Corporate Tax, read:
What Businesses Can Do to Prepare
Source: Freepik
To prepare for Coretax implementation under PER-11/PJ/2025, businesses must activate their Coretax access by validating contact details and submitting activation requests via the official taxpayer portal or tax office. Then:
- Ensure your company’s primary leader or authorized signatory (as listed in official documents) can access the DJP Online platform and has created login credentials.
- Assign access for the main Person In Charge (PIC) and, if needed, authorize proxies or representatives within your company for Coretax access management.
- Review and validate all company profiles, including address, directors, and tax registration details on the DJP portal.
- Update vendor and partner NPWP data to the new 16-digit format for improved invoice and e-Faktur management
Then, proceed to register in the Coretax portal:
- Log in to the Taxpayer Portal and validate your registered email and mobile phone number.
- Submit activation requests and receive approval as the official communication channel for tax matters.
Next, align your internal workflows with Coretax requirements by:
- Categorizing taxable items according to Coretax codes,
- Adjusting document submissions and reporting formats to fit the new digital system.
Integrate your IT or accounting systems with Coretax to automate uploads, generate payment codes, and prepare financial reports in the required digital format. At the same time, train your finance and accounting teams to navigate the new platform confidently.
Before migration, conduct an internal compliance audit to identify inconsistencies or errors in past filings, and plan for regular reviews moving forward. Stay informed about regulatory changes by monitoring official DGT updates or consulting trusted tax professionals when needed.
Keep your digital documents organized, and note that most tax payments are due by the 15th of the following month.
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FAQ
1. What is the purpose of Indonesia’s Core Tax Administration System?
To unify and digitize tax reporting, reduce redundancy, and enhance transparency for both local and foreign taxpayers.
2. Who needs to comply with PER-11/PJ/2025?
Both government institutions and private businesses act as withholding agents or tax collectors.
3. How does Coretax improve Indonesia’s ease of doing business?
It streamlines compliance, automates reporting, and integrates data across tax types, reducing administrative friction.
4. Is Coretax mandatory for foreign-owned companies in Indonesia?
Yes, all registered taxpayers, including foreign-owned entities, must report through Coretax once implemented.
5. When did PER-11/PJ/2025 take effect?
It came into force in 2025 as part of the national digital tax transformation initiative led by Indonesia’s Directorate General of Taxes.