SUPPORTING FUNCTIONS OVERVIEW
E. BUSINESS PROCESS DEVELOPMENT
1. Implementation of Financial Report Information Standardization (SILK)
The development of Financial Report Information Standardization (SILK) in extensible business reporting language (XBRL) format is expected to be able to overcome asymmetric information for financial report users through single reporting so that it can help maintain financial sector stability. The implementation of SILK is also in line with the plan to establish a Financial Reporting Single Window (FRSW) as a mandate for the implementation of Law no. 4 of 2022 concerning Development and Strengthening of the Financial Sector (UU P2SK). It is hoped that XBRL can support the paradigm shift in the tax ecosystem towards tax administration 3.0 which is increasingly integrated into the taxpayer system seamlessly.
2. Knowledge Management
In accordance with Minister of Finance Regulation No. 226/PMK.011/2019 concerning Knowledge Management within the Ministry of Finance that knowledge management is a structured and systematic effort in developing and using knowledge owned through the process of identification, documentation, organizing, placing, disseminating and applying knowledge as an organizational intellectual asset.
Furthermore, in the 2020-2024 DGT Strategic Plan, it is stated that in current conditions, DGT does not yet have a special unit that handles or implements the knowledge management process. In addition, there are many sectoral knowledge portals or applications that are run without integration, collaboration, and uniformity in management.
Therefore, DGT is implementing a knowledge management improvement strategy that focuses on the aspects of organizational/task and function, technology, and business process.
Achievements of of knowledge management development at DGT in 2022 include the following:
a. Organizational/task and function aspect
The stipulation of Director General of Taxes Decree No. KEP-622/PJ/2022 concerning Coordination of the Implementation of Tasks and Functions in the Transition Period Towards Organizational Change in the Head In 2022, DGT has begun implementing the
submission of SILK financial reports to 37 taxpayers.
As a result, as many as 33 taxpayers successfully submitted financial reports and received the benefits of prepopulation of SILK financial report data in the Annual Tax Return for Corporate.
DGT, in collaboration with the University of Indonesia and funded by the donor agency Deutsche
Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), conducted research on the level of corporate taxpayer acceptance of XBRL for tax reporting using a frameworks combination between DeLone and McLean Information System Success
Model (DMISS) and Technology Acceptance Model (TAM). The research results show that the success of implementing XBRL for tax reporting is influenced by four important factors, namely the quality of information produced by the system, subjective norms, the quality of the XBRL system for tax reporting, and the quality of services provided by DGT in the process of implementing XBRL for tax reporting. The research also recommends several characteristics of taxpayers as targets for expanding implementation, namely compliant taxpayers, state- owned enterprises, and multinational companies.
These recommendations are the basis for a strategy to expand SILK implementation in 2023.
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Improvement of the supervision business process was carried out through the issuance of Circular Letter No. SE-5/
PJ/2022 concerning Supervision of Taxpayer Compliance, by sharpening the alignment between supervisory business processes with other relevant business processes and accommodating developments in information technology.
Circular Letter No. SE-5/PJ/2022 serves as a guideline for implementing the end-to-end taxpayer compliance monitoring business process which consists of planning, implementation, follow-up, as well as monitoring and evaluation of supervision. The main objective of improving the supervision business process as stated in this Circular Letter is to increase the efficiency and effectiveness of supervision to realize sustainable taxpayer compliance, as well as support the achievement of optimal tax revenues.
3. Development of Voluntary Disclosure Program’s Business Process
The implementation of Voluntary Disclosure Program is carried out completely electronically so that DGT requires several application developments by first carrying out an in-depth study which is outlined in the analysis document.
Several analysis documents related to application development of Voluntary Disclosure Program prepared in 2022, namely: a) Analysis Document of Application Development Request for Voluntary Disclosure Program; b) Analysis Document of Application Development for Main Dealer Reporting; and c) Analysis Document of Application Development for Repatriation Reporting, Investment and Non-Investment Reporting of Net Assets of Taxpayers Participating in the Voluntary Disclosure Program.
The Voluntary Disclosure Program application development implemented by DGT based on the above study includes, among others, as follows:
a. development of web services related to Voluntary Disclosure Program reporting, cancellation of Net Asset Disclosure Certificate, and confirmation of Voluntary Disclosure Program participation;
b. addition of blocking feature for Transfer of KAP/KJS 411128/427 and 411128/428 in the SIDJP application;
c. addition of blocking feature of Annual Tax Return correction for Tax Year 2016—2020 for taxpayers who follow Policy II after receiving a Notice of Voluntary Disclosure Program on the TPT Online application;
d. application development of Net Asset Disclosure Certificate cancellation:
e. application development for the submission of Voluntary Disclosure Program data for Policy I.1, I.2, and I.3 criteria on the Apportal app;
f. the development of an application to create a nominative list of taxpayers who will be invited to participate in the Voluntary Disclosure Program on the Apportal app;
g. application development for the submission of Voluntary Disclosure Program data for Policy II.1, II.2, II.3, II.4 criteria on the Apportal app;
h. application development of List of Repatriated Taxpayers of Voluntary Disclosure Program on the Apportal app;
i. application development of Voluntary Disclosure Program data monitoring dashboard on the Mandor app;
j. development of data flagging for taxpayers who participate in Voluntary Disclosure Program on the Approweb app;
k. application development of post-Voluntary Disclosure Program follow-up on the Apportal app.
4. Supervision Business Process
5. Payment Business Process
Developments carried out by DGT in the payment business process include: a) development of a restitution
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6. Registration Business Process
Developments carried out by DGT in the registration business process include: a) development of appointment revocation for collector of VAT of Trading through Electronic System on the PMSE Portal app; b) development of business processes and applications for matching and updating NPWP with NIK; c) providing an independent data updating dashboard on the DGT portal application; and d) application development for reporting repatriation, reporting investment and non-investment of net assets of Voluntary Disclosure Program participant taxpayers.
7. Joint Business Process and Information Technology
Developments in the joint business process and information technology in 2022 include the development of an integrated service and supervision system between DGT, DGCE, DGB, DGFB and the National Single Window Agency. The output of this development is the implementation of single submission, single document, single profile, and single treatment in export, import, excise, facility area, and non-tax state revenue (PNBP), as well as the national implementation of fully electronic endorsement in Free Trade Zone and Free Port.
8. Administrative Services Business Process
As part of the development of the administrative services business process, in 2022 DGT has developed a business process for completing requests and administering Sales Tax on Luxury Goods exemptions and refunds for motorized vehicles. Several related procedures have been prepared, namely: a) completion of requests for Notice of Exemption of Sales Tax on Luxury Goods submitted electronically and submitted directly to the tax office; b) replacement for Notice of Exemption of Sales Tax on Luxury Goods; c) cancelation of replacement for Notice of Exemption of Sales Tax on Luxury Goods; d) completion of requests for Sales Tax on Luxury Goods refunds on imports or acquisition of motor vehicles that should be subject to lower rate of Sales Tax on Luxury Goods; and e) completion of requests for Sales Tax on Luxury Goods refunds on the import or acquisition of motor vehicles that are exempt from the imposition of Sales Tax on Luxury Goods.
9. Business Process of Income Tax on Income from Transfer of Land and/or Building Rights
In order to provide convenience, legal certainty, and improve services to taxpayers while increasing partnerships and cooperation with notaries and Land Deed Registrar (PPAT), in 2022 DGT issued Director General of Taxes Regulation No. PER-8/PJ/2022 concerning Procedures for Researching Evidence of Fulfillment of the Obligation to Pay Income Tax on Acquisition of Right on Land and/or Building (PPHTB), and Sale and Purchase Agreement for Land and/or Building as well as its amendment.
Improvement of business processes related to PPHTB carried out by DGT based on procedures regulated in Director General of Taxes Regulation No. PER-8/PJ/2022 includes the development of the e-PHTB Notary/PPAT application.
DGT developed this application to improve its services to the public by making it easier to access formal research requests for proof of fulfillment of PPHTB payment obligations. With this application, requests which previously could only be submitted through two channels, namely directly to the tax office or via e-PHTB at DJPOnline, can then be submitted by the Notary/PPAT as the taxpayer’s attorney through the e-PHTB Notary/PPAT application. The use of e-PHTB at DJPOnline and e-PHTB Notary/PPAT also reduces service time. This is due to the formal research product
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development of regular report management at DGT, which was previously submitted in hardcopy and compiled manually and then converted into an electronic document which is submitted online via the information system.
Issuance of Circular Letter No. SE-3/PJ/2022 is in line with DGT’s efforts to realize e-government in all existing business process. This new regular report submission governance will make it easier for all DGT offices to carry out regular report administration effectively and efficiently, which in turn will have an impact on improving the quality of data and/or information.
In relation with the development of data quality management business process, DGT is currently developing a Fiscal Loss Compensation dashboard. The development of this dashboard is also to fulfill the assessment criteria for the Tax Administration Diagnostic Assessment Tool (TADAT) on the contribution indicator for the process of preparing the state revenue prognosis (P8-26). In this assessment, the tax administration will get a score of A if it is able to regularly monitor and report the amount of fiscal losses that can be compensated for in the future which could potentially reduce state revenues.
The Fiscal Loss Compensation Dashboard will make it easier for DGT offices to monitor the value of fiscal loss compensation reported by taxpayers and detect taxpayers who report losses and compensate incorrectly.