On January 1, 2025, a new era of tax administration began in Indonesia with the introduction of Coretax. What makes this system so interesting, and what significant changes does it bring to tax practices?
For PT PMA company owners in Bali, Coretax offers entirely new opportunities for controlling and optimizing tax processes. A key feature of Coretax is the transition from corporate electronic certificates to individual certificates for representatives. Previously, e-faktur signatures were made on behalf of the company, reflecting the name of the director or contact person. Now, each representative authorized to upload or submit reports will use a personal certificate, and their name will appear directly in the tax system, significantly simplifying the control and responsibility for tax reporting.
The electronic certificate acts as a digital signature, allowing representatives to quickly and conveniently fulfill the company's tax obligations. Importantly, the roles of representatives in the system are clearly divided: there are drafters and signers. This is particularly useful for PT PMA owners who often delegate day-to-day management tasks to staff and want to ensure transparency and security in tax operations.
The responsible persons (PIC), who are initially accountable for fulfilling tax obligations, can delegate their powers to other employees by issuing a special power of attorney. This right is anchored in Article 7, Clause (2) PMK 81 and is strictly regulated by tax legislation, ensuring PT PMA company owners legal protection and transparency in delegating tax powers.
The legal aspects of representation are detailed in Article 32 of Law No. 28 from 2007 with subsequent amendments, stating that taxpayer representatives must possess certain competencies unless they are close relatives.
Additional requirements are outlined in the Minister of Finance Regulation No. 229/PMK.03/2014. According to this, taxpayers can appoint either licensed tax consultants or permanent company employees with specific qualifications (e.g., a tax brevet or a diploma in taxation) as representatives.
It is important to remember that if a representative does not meet the established requirements, they lose the right to perform the company's tax duties. This is especially crucial in the context of VAT, as an invoice signed by an unauthorized person becomes invalid for input VAT credit, leading to potential additional costs for PT PMA owners.
Thus, the implementation of the Coretax system is not just a step forward in the digitalization of tax administration but also a serious demand for the professionalism and responsibility of each representative, which is especially important for effective management and the security of PT PMA companies' tax activities in Bali.
The Legal Indonesia team is always ready to provide you with professional assistance in adapting to the new Coretax system. Our experts will advise you on all tax-related issues, ensure compliance with legislation, and help avoid potential tax risks. With Legal Indonesia, your tax reporting will always be in order and securely protected.
For consultation, contact us:
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