Indonesia’s Directorate General of Taxes (DJP) has introduced a tax deposit feature under its Coretax system, offering greater flexibility in how taxpayers manage and settle their tax obligations.
Under the updated system, taxpayers now have two main payment options: generating a billing code for direct payment or depositing funds in advance through the tax deposit feature. The deposit mechanism is designed to streamline payments and reduce the risk of late-payment penalties.
How the Tax Deposit Works
When creating a deposit billing code in the Coretax system, the platform automatically follows the current calendar year. For example, if a billing code is generated in 2026, the system will only display the 2026 tax period as an option. However, authorities clarify that this does not restrict how the deposit can ultimately be used.
According to the DJP’s tax information service, a tax deposit can still be applied to tax periods or fiscal years other than the current one, as long as the available balance is sufficient. The labels shown during billing code creation — such as “for payment,” “for period,” and “for tax year” — are considered indicative rather than binding. In practical terms, this means deposited funds are not locked to a specific tax period.
“Deposits made for the tax period and year listed are indicative and do not bind the use of the deposit at the time of tax return filing or book-entry transfer requests,” the tax office explained, as quoted by DDTC.
Taxpayers may therefore allocate their deposit balance to different types of taxes, reporting periods, or fiscal years, provided the remaining balance covers the intended payment.
Recognized Payment Date Matters
One of the key advantages of the deposit scheme is protection from administrative sanctions. DJP developed the feature to help taxpayers avoid penalties caused by late payment.
A tax obligation settled using the deposit facility is officially recognized based on the date the deposit was originally paid, not the date the funds are later allocated. Under Article 103 paragraph (4) of Finance Ministry Regulation (PMK) 81/2024, deposits made through the state revenue electronic system are recognized as paid on the date shown on the State Revenue Receipt.
If the deposit is filled through a book-entry transfer request, the recognized payment date follows the date stated in the Book-Entry Transfer Receipt. Meanwhile, if the deposit originates from an approved tax overpayment refund or interest compensation, the payment date corresponds to the issuance date of the official tax refund decision letter.
What This Means for Taxpayers
The flexibility of the Coretax deposit system allows individuals and businesses to manage cash flow more efficiently. Instead of making multiple separate payments for different tax periods, taxpayers can maintain a deposit balance and allocate it as needed.
As long as the balance remains sufficient, the deposit can be redirected across tax types and fiscal years — offering both administrative convenience and reduced compliance risk.
With Indonesia continuing to modernize its tax administration, the Coretax deposit feature signals a broader shift toward digital efficiency and taxpayer-friendly compliance tools.
Source: DDTC
Photo Credit: Getty Images
