Amidst the accelerated migration of global supply chains to Indonesia, Taiwanese businesses are inextricably linked to "tax compliance." The Indonesian government's Core Tax System (CTAS) is not just a new system, but a digital revolution that is fundamentally changing the way businesses file and oversee tax returns.

At the Dingxin Digital Intelligence Indonesia Seminar, PwC Indonesia Certified Public Accountant Chung Chia-ying and her team provided authoritative and in-depth analysis, helping companies shift from passively responding to frequently changing tax regulations to proactively planning digital transformation, ensuring the stability and compliance of local operations.

I. The Core Spirit and Timeline of CTAS: An Authoritative Interpretation by Accountant Zhong Jiaying

The accounting team led by Zhong Jiaying first clarified the core objectives and progress of Indonesia's Core Tax System (CTAS):

1. CTAS Core Spirit: Comprehensive Digitalization and Borderless Management

The core purpose of the Core Tax System is to provide convenience for taxpayers and enhance the automation and digitalization of tax administration services. Its key features include:

• Service Integration: CTAS integrates all previously scattered tax services, such as DJP online, e-Faktur (electronic VAT invoice), and e-Bupot (withholding tax invoice), centralizing information.
• Data Linkage: All taxpayer information is centralized in a single database, covering everything from compliance status to audit records, enabling real-time monitoring and integration of tax data.
• Security First: The system prioritizes the security of taxpayer accounts, enabling businesses to fulfill their tax obligations in a digital, borderless environment.

2. Implementation Timeline: Two-phase launch in 2025

CTAS's business processes/modules will be launched in two phases in 2025, covering up to 13 modules including taxpayer account management, registration, tax payment, report processing, services, and auditing. Enterprises must pay close attention and plan ahead to ensure that their internal systems can be integrated with the new tax architecture within the specified timeframe.

II. Four Visions for Enterprise Tax Digital Transformation: From Data to Insight

The PwC team emphasizes that when dealing with the Core Tax System, companies should not merely aim to "cope" with compliance, but rather elevate tax management to a group-wide strategic level, achieving comprehensive digital transformation. A successful transformation vision revolves around the following "four connections":

1. Connected Data:

• Objective: To achieve data integration, accessibility, and real-time sharing .
• Significance: To ensure that the data sources used for tax declaration are unified and accurate, fundamentally solving the problem of data silos.

1. Connected Teams:

• Objective: To promote the application of collaboration tools and change management across departments (finance, IT, business).
• Significance: Tax administration is no longer the responsibility of a single department; it requires cross-team collaboration to ensure data accuracy and process standardization.

1. Automated Process:

• Objective: To automate workflows and manage tasks , thereby improving the efficiency of tax filing and review.
• Significance: Reduces human error and frees up human resources from tedious daily operations.

1. Connected Insights:

• Objective: To use advanced analytics and business intelligence (BI) for data prediction.
• Significance: Extracting valuable decision-making information from past data to assist companies in making forward-looking plans in taxation and operations.

III. Strategies for Taiwanese Businesses: The Importance of Dingxin Digital's Local Compliance Platform

Accountant Chung Chia-ying and her team's professional analysis has pointed the way for Taiwanese businesses in Indonesia: compliance is fundamental, and data quality is key. To achieve the digital transformation blueprint outlined by PwC, companies must strengthen the four cornerstones of their tax digital transformation:

1. Governance and Compliance
2. Data Quality
3. Streamlining processes and tools
4. Tax data monitoring and storage

Among these steps, the most important practical step in achieving transformation is to interface the enterprise's internal ERP system with the Core Tax System to ensure data quality and timeliness.

This is precisely the strategic value of Dingxin's digital intelligence service capabilities: Dingxin ERP and its "third-party integration platform" solution ensure that your ERP system can securely, stably, and compliantly exchange data with the CTAS interface (API) without directly exposing core data to tax authorities. This enables enterprises to seamlessly translate PwC's strategic blueprint (enhancing data quality and processes) into actual operational results.

Seize the compliance advantage and establish a foothold in the Indonesian market through digitalization.

Businesses must act quickly in the face of the digital wave brought about by Indonesia's Core Tax System.

The combination of PwC's professional advice and Dingxin Digital's local implementation capabilities provides Taiwanese businesses with a comprehensive solution: not only ensuring high standards of tax compliance, but also transforming tax management into a competitive advantage for group operations through digital upgrades.

We sincerely invite you to consult with Dingxin Southeast Asia team to gain professional insights and ensure the stability, compliance, and longevity of your Indonesian operations.

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