Transformation of Indonesia's Tax System through Coretax: A Qualitative Study in the Digital Era

Abstract

The transformation of the tax system in Indonesia has become an urgent necessity in facing the challenges of efficiency and taxpayer compliance.  This study analyzes the implementation of coretax as a strategy for simplifying tax administration in the digital era.  Coretax focuses on major taxes such as Income Tax (PPh) and Value Added Tax (PPN), with the aim of increasing transparency and accuracy in tax collection.  This research uses a qualitative approach through a literature review of digital taxation policies in Indonesia.  The research results indicate that the implementation of coretax has the potential to increase taxpayer compliance through a more integrated administrative system.  However, the main challenges in implementing coretax include the readiness of digital infrastructure, the level of tax literacy among the public, and the integration of regulations between institutions.  Therefore, comprehensive policies are needed to ensure the effectiveness of this tax system transformation.  This study provides recommendations for the government to enhance technological readiness and taxpayer outreach to support the implementation of a more efficient and equitable coretax system.