Coretax 2025: The Digital Tax Revolution for Business Owners in Bali
As of January 1, 2025, Indonesia has entered a new era of tax administration with the introduction of the Coretax system. But what makes this system so important, and what major changes does it bring to tax practices?
For PT PMA business owners in Bali, Coretax offers new opportunities for monitoring and optimizing tax processes. One of its key features is the transition from corporate electronic certificates to personal certificates for representatives. Previously, in the e-Faktur application, signatures were placed on behalf of the company, displaying the name of the director or contact person. Now, each representative authorized to submit or upload tax reports will use a personal certificate, and their name will appear directly in the tax system, ensuring greater accountability and transparency.
The electronic certificate serves as a digital signature, allowing representatives to fulfill a company’s tax obligations quickly and conveniently. The system clearly defines the roles of representatives: drafters (who prepare documents) and signers (who authorize them). This structure is particularly beneficial for PT PMA owners who delegate tax-related tasks to employees and want to ensure secure and transparent tax operations.
Persons in Charge (PICs), who are initially responsible for fulfilling tax obligations, can delegate their authority to other employees by issuing a special power of attorney. This right is outlined in Article 7, Clause (2) of PMK 81, strictly regulated under tax law, ensuring legal protection and transparency when delegating tax responsibilities for PT PMA business owners.
The legal framework for tax representation is further detailed in Article 32 of Law No. 28 of 2007 (as amended), which states that tax representatives must meet certain competency requirements, except in cases where they are immediate family members.
Additional requirements are set forth in Minister of Finance Regulation No. 229/PMK.03/2014, which specifies that taxpayers may appoint either licensed tax consultants or permanent company employees with specific qualifications (such as a tax brevet or a degree in taxation).
However, it is important to note that if a representative does not meet these requirements, they lose the right to handle the company’s tax affairs. This is especially critical for VAT compliance, as a tax invoice signed by an unauthorized person will be invalid for input VAT deductions, potentially leading to extra costs for PT PMA owners.
Thus, the introduction of Coretax is not just a step forward in digitalizing tax administration but also a major shift towards greater professionalism and accountability for tax representatives. This is especially crucial for efficient tax management and regulatory compliance for PT PMA businesses in Bali.
At Legal Indonesia, our team is ready to help you adapt to the new Coretax system. Our experts will provide guidance on tax matters, ensure full compliance with regulations, and help you avoid potential tax risks. With Legal Indonesia, your tax reporting will always be accurate and well-protected.
