As the 2025 fiscal year comes to a close and 2026 is just around the corner, taxpayers will soon begin the process of filing their Annual Tax Return (SPT). Drawing from previous experience, it’s highly advisable to submit your SPT early to prevent potential technical issues or last-minute delays before the filing deadline.
What makes the 2025 tax year unique is the introduction of a new system called Coretax, which will now be used for Annual Tax Return submissions.
For individual entrepreneurs and corporate taxpayers, Coretax is not entirely new, as it’s been in use since January 2025 for monthly tax filings and payments. However, for employees, this will be the first time using the new system to file their annual SPT.
WHAT IS CORETAX?
Coretax is a modern tax administration system developed by the Directorate General of Taxes (DJP) to integrate all tax processes — from registration, reporting, and payment to audit and collection. The system was officially launched by President Prabowo Subianto on December 31, 2024, and is regulated under Minister of Finance Regulation No. 81 of 2024 concerning the implementation of the Core Tax Administration System, effective from October 18, 2024.
One of Coretax’s key changes is the simplification of tax forms. Previously, employees used Form 1770 S (for income above IDR 60 million per year) or Form 1770 SS (for income up to IDR 60 million). Under Coretax, there is now only one unified form, the Individual Income Tax Annual Return (SPT Tahunan PPh Orang Pribadi).
Tax withholding slips have also changed.
- Form 1721-A1 (for private sector employees) is now BPA1
- Form 1721-A2 (for civil servants) is now BPA2.
To ensure a smooth process and avoid last-minute stress, here are four important things every employee taxpayer should prepare for in advance.
1. Ensure Your NIK and NPWP Are Integrated
Starting January 1, 2025, the National Identification Number (NIK) officially serves as the Tax Identification Number (NPWP) for individual taxpayers. If you’re NIK and NPWP have not been integrated, you won’t be able to file your tax return in Coretax.
To check your integration status:
- Log in to DJP Online using your NIK. If successful, your NIK and NPWP are already linked.
- Or, visit https://coretaxdjp.pajak.go.id, select “Taxpayer Account Activation”, check “Is the taxpayer already registered?” enter your NIK, and click “Search”. If your name appears (even partially hidden), it’s already registered.
If not, visit your nearest tax office and bring your National ID (KTP) and Family Card (KK) for verification and integration.
2. Activate Your Coretax Account and Create an Authorization Code
Once your NIK and NPWP are integrated, the next step is to activate your Coretax account and create an authorization code.
Account activation allows you to access DJP’s online tax services. The authorization code functions as an electronic signature issued by DJP, ensuring secure and valid submissions.
In Coretax, every Annual Tax Return must be electronically signed using a digital certificate or a DJP-issued authorization code. Without it, the submission cannot be completed.
Steps to activate your account:
- If you don’t have a DJP Online account, go to the Coretax portal and select “Account Activation.” You will receive an activation email containing your login credentials.
- If you already have an account, select “Forgot Password,” enter your NIK/NPWP, and follow the reset instructions.
Steps to create an authorization code:
- Log in to Coretax.
- Go to “My Portal” → “Authorization Code / Digital Certificate Request.”
- Create a passphrase and check the confirmation box
- Click “Save.”
3. Review the Tax Rules for Married Employees
For married couples who both earn income and have separate NPWPs, it’s important to review the tax reporting options available. Although the filing process is now done via Coretax, the underlying tax regulations remain the same.
The Indonesian tax system recognizes the family as one economic unit, allowing couples to either combine or separate their tax filings:
- Combined filing — The husband files the SPT under his NPWP, and the wife’s income is reported as part of his.
- Separate filing — The wife files her own SPT if she chooses to fulfill her tax obligations independently or in cases of legally separated assets.
Each option has its pros and cons. For wives who wish to combine their obligations with their husbands, it is necessary to deactivate their NPWP and ensure their NIK is listed in the husband’s Family Unit Record (DUK) within Coretax.
4. Update Your Dependents and PTKP Status
Family dependents often seem like a minor detail, but they directly affect your income tax calculation (PPh 21) through the non-taxable income threshold (PTKP).
PTKP depends on your marital status and number of dependents (up to three). The more dependents you have, the higher your PTKP — meaning less tax is withheld from your salary.
Your employer, who withholds and reports your monthly PPh 21, must have your latest family data — including marital status and dependents — to calculate your tax accurately.
Before your company issues the BPA1/BPA2 withholding slip for December 2025, ensure all your personal and dependent data are correct. If there are changes, promptly inform your HR or finance department.
CONCLUSION
By understanding and preparing these key steps early, employees and businesses can file their taxes more easily, accurately, and securely. The Coretax system is designed to simplify the tax reporting process — not to make it more complicated.
So, don’t wait until the end of March. Prepare your data now, ensure all information is accurate, and experience the convenience of filing your SPT through Coretax.
At Moores Rowland Indonesia, our Tax Department is ready to assist you in ensuring full compliance and efficiency in your tax reporting process. Whether you need guidance, review, or end-to-end support, our professionals are here to help.
Contact Moores Rowland Indonesia today to learn how we can support your business in meeting tax obligations with confidence and peace of mind.
