PPh withholding plan to be overhauled after DJP adopts Coretax

Tax Payer Community has proposed a overhaul of the Income Tax withholding mechanism after Direktorat Jenderal Pajak began using Coretax. Tax Payer Community chairman Abdul Koni said the data-based system would allow real-time oversight through data integration, transaction matching, automated risk analysis and taxpayer profiling, so the state would no longer need to rely heavily on tax withholding by third parties. He is pushing a Direct Tax Settlement model: income recipients calculate, pay and report their own taxes, while income payers only report the transaction. Koni said the scheme could simplify administration, reduce compliance costs, strengthen legal certainty and cut disputes and the risk of double taxation that has long burdened companies.