DGT Issues Technical Regulations on Coretax Usage Covering 12 Tax Services
The Directorate General of Taxes (DGT) has issued technical regulations regarding the implementation of Coretax by enacting Director General of Taxes Regulation (PER-8/PJ/2025).
This regulation is a derivative of higher-level provisions, namely Presidential Regulation (Perpres) No. 40 of 2018 and Minister of Finance Regulation (PMK) No. 81 of 2024.
As stipulated in PER-8/PJ/2025, which took effect upon issuance on May 21, the regulation governs 12 procedural aspects of DGT tax services, including the following.
1. Procedure for Issuing a Tax Clearance Certificate
Previously, the procedure for issuing a Tax Clearance Certificate (Surat Keterangan Fiskal, SKF) was regulated under DGT Regulation No. PER-03/PJ/2019. With the issuance of PER-8/PJ/2025, taxpayers who require a fiscal certificate can now submit their application via the taxpayer portal available in Coretax.
Previously, the application for a fiscal certificate could only be submitted through the DGT website or directly to the Tax Office (KPP) or Tax Counseling and Consultation Services Office (KP2KP).
2. Procedure for Changing Accounting Method and/or Fiscal Year
The new regulation also stipulates that taxpayers who wish to change their accounting method or fiscal year must submit an application to the Director General of Taxes.
The application must be submitted no later than one month before the new fiscal year begins, accompanied by a justification for the change and other administrative requirements outlined in the regulation.
Previously, the provisions on changing accounting methods or fiscal years were only covered in DGT Circular Letter No. SE-40/PJ.42/1998, which provided implementation guidelines for DGT Decree No. KEP-208/PJ/1998.
3. Use of the English Language and Foreign Currency in Bookkeeping
Through PER-8/PJ/2025, the government has updated procedures regarding the application, notification, issuance, revocation, and reissuance of permits for maintaining bookkeeping and recording using the English language or bookkeeping using English and U.S. Dollar currency.
To maintain books in English and U.S. dollars, eligible taxpayers can submit a notification through the taxpayer portal or contact center.
However, only certain categories of taxpayers may submit this notification, specifically:
- Taxpayers holding contracts of work in mineral mining.
- Taxpayers holding production sharing contracts in oil and gas.
- Foreign direct investment (FDI) taxpayers.
- Permanent establishments (BUT) under the Income Tax Law or tax treaty (DTA).
- Taxpayers that are part of a business group with a foreign parent company.
- Taxpayers whose shares are listed on a foreign stock exchange.
- Collective investment contracts issuing mutual funds in U.S. Dollars.
- Taxpayers who are bound by a government agreement must use English and USD for bookkeeping.
- Joint operation (KSO) taxpayers.
4. Use of Book Value in Asset Transfers and Acquisitions
The regulation also outlines procedures for applications and decisions regarding the use of book value in the transfer and acquisition of assets during corporate actions.
Corporate actions include Business mergers, Business consolidations, Business spin-offs, and Business takeovers
To use book value treatment in any corporate action, the taxpayer may submit an application to the Director General of Taxes, accompanied by a justification and the required supporting letters or documents.
5. Procedure for asset revaluation for tax purposes
Companies may perform a revaluation of assets for tax purposes. This is done by applying to the Director General of Taxes electronically through the DGT portal.
6. Procedure for applying for exemption from Income Tax withholding/collection
Taxpayers may apply for an exemption from Income Tax withholding or collection by another party. The application can be submitted to the Director General of Taxes electronically through the taxpayer portal.
The exemption from withholding or collection of Income Tax can be applied for by taxpayers, whether for Income Tax payable in the current tax year or final Income Tax payable.
The exemption of Income Tax in the current tax year is applied for if the taxpayer is experiencing a fiscal loss, is entitled to carry forward fiscal losses, or if the prepaid Income Tax exceeds the payable Income Tax.
7. Procedure for issuing a Certificate of Tax Exemption (SKB) for Income Tax Article (ITA) 22 on gold bullion imports
Taxpayers may apply for a Certificate of Tax Exemption (SKB) for ITA 22 on the importation of gold bullion, specifically for gold bullion that will be processed into gold jewelry and subsequently exported.
The application for the SKB for ITA 22 may be submitted to the Director General of Taxes electronically through the taxpayer portal on Coretax.
However, if experiencing difficulties in using Coretax, the application may be submitted directly to the Tax Office (KPP) or Tax Counseling and Consultation Services Office (KP2KP), or via mail, courier, or delivery service companies.
8. Procedure for issuing a Tax Clearance Certificate (SKB) for withholding tax on deposit/savings interest and Certificate of Bank Indonesia (SBI) discounts
Taxpayers may apply for an SKB for Income Tax on deposit/savings interest as well as Income Tax on the discount of Certificates of Bank Indonesia (SBI).
Previously, income in the form of deposit/savings interest and SBI discounts received by pension funds was not subject to Income Tax, provided that the funds originated from sources regulated under the Pension Fund Law.
Pension funds may apply for an SKB for exemption from Income Tax electronically through the taxpayer portal. If not possible, the application may be submitted directly to the KPP or KP2KP, or via mail/courier/delivery services.
9. Procedure for Income Tax Exemption on the Transfer of Land and Luxury Residences in Tourism Special Economic Zones (SEZs)
Income received from the transfer of rights to land/buildings or from a PPJB agreement on land/buildings is subject to final Income Tax.
However, the imposition of Income Tax is exempted for certain taxpayers, as outlined in PER-8/PJ/2025. The exemption from the payment/withholding of Income Tax is granted through the issuance of a Tax Exemption Certificate (SKB). Except that, if according to the legislation, the Income Tax exemption can be done without an SKB.
10. Procedure for Requesting Verification of Evidence of Income Tax Payment Fulfillment Related to the Transfer of Land/Buildings
Taxpayers who receive income from the transfer of rights or who enter into a binding sale and purchase agreement (PPJB) on land/buildings must submit a request for verification of evidence of Income Tax payment fulfillment to the Tax Office (KPP).
The request is submitted electronically through the taxpayer portal or non-electronically.
11. Issuance of Certificate for the Utilization of Taxable Services (JKP) from Outside the Customs Area into the Customs Area
The utilization of taxable services from outside into the customs area is not subject to Value Added Tax (VAT) or Sales Tax on Luxury Goods (STLG).
To be able to use this facility, taxpayers need to have a Certificate before the import is carried out. The request for the certificate can be submitted electronically through the taxpayer portal.
If not possible, it can be submitted directly to the Tax Office or sent via postal/courier services.
12. Revocation of Approval for Income Tax Imposition on Foreign Citizens' Income in Indonesia
The Director General of Taxes has the authority to revoke an approval letter previously granted for the imposition of Income Tax solely on income received by Foreign citizens (WNA) in Indonesia.
Revocation is carried out based on the findings of a review indicating that the foreign citizen has either taken advantage of a Double Tax Avoidance Agreement (P3B) or does not qualify as a foreign worker meeting the stipulated requirements.
Generally, PER-8/PJ/2025 was issued to simplify, modernize, and standardize certain tax administrative procedures in a digital and integrated manner within the Coretax System. Its focus is to facilitate taxpayers’ rights and obligations by adhering to the principles of transparency, efficiency, accountability, and legal certainty. (ASP/KEN)
