Indonesia’s tax landscape is undergoing a significant transformation with the introduction of Coretax, the new integrated tax system designed to modernize and streamline tax administration.
Coretax is the new administrative service system developed by the Directorate General of Taxes (DJP) designed to provide convenience for users. The development of Coretax is part of the Core Tax Administration System Renewal Project (PSIAP), which is mandated under Presidential Regulation No. 40 of 2018. The PSIAP project aims to redesign the tax administration business processes through the development of a Commercial Off-the-Shelf (COTS)-based information system, accompanied by improvements to the tax database.
As businesses navigate this transition, HR professionals play a critical role in ensuring compliance, updating policies, and strategically preparing their workforce.
Why Coretax Matters for HR
HR professionals need to be aware of Coretax because it impacts payroll processing, employee tax reporting, and corporate tax compliance. Here are key areas HR teams should focus on:
- Payroll & Tax Compliance
Coretax streamlines tax reporting and payroll deductions, requiring HR teams to ensure accurate employee data and up-to-date salary structures that align with tax regulation - Employee Data Management
The system integrates real-time data, making it essential for HR to maintain accurate employee records to avoid compliance risks. - Reporting & Documentation
HR teams must ensure that all employee tax-related documentation is properly managed and submitted on time, reducing the risk of penalties. - Employee Awareness & Training
With new tax procedures in place, HR should educate employees about any changes affecting their tax obligations.
As an HR Consulting & Services Company, Sinergis offers a comprehensive HR Shared Services to help organizations seamlessly transition to Coretax while optimizing their HR processes. Ensuring payroll structures align with Coretax requirements, helping businesses update and maintain employee records for compliance, advising the leader about new tax regulations and processes.
To ensure a smooth transition, HR leaders should verify employee tax data, update payroll systems, and schedule training sessions. By partnering with Sinergis, businesses can simplify compliance, enhance efficiency, and stay ahead in the evolving tax landscape.
As Coretax reshapes tax administration in Indonesia, HR teams must stay informed and proactive. Let Sinergis be your strategic partner in navigating this change. Contact us today to learn how we can support your business in the Coretax era!
