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Not many people are aware of OnlinePajak app that helps people for online accounting, reporting, and tax deposit. It’s a third-party application or an alternative for tax solution.
OnlinePajak finds a new solution for its mission to simplify the complicated administration process. By adopting blockchain technology to increase transparency in Indonesia’s tax system.
The blockchain implementation is announced on Friday (4/27). Also joining the ceremony were Minister of Communication and Information (Menkominfo) Rudiantara, General Secretary of Indonesia’s Blockchain Association (ABI) Steven Suhadi, and tax observer Yustinus Prastowo.
Charles Guinot, Founder & Director of Online Pajak, said in his speech that blockchain technology can ensure transparency not only for the public, but also for the government’s system.
“The main issue in the tax system is trust. They always questioning whether the tax they’ve paid is recorded or not. It happens too when purchasing a property, they didn’t know whether its tax has been paid by the previous owner,” he said.
Tax payment involves some parties, from DJP (Directorate General of Tax), DJP (Directorate General of Treasury), Bank Indonesia (BI), Perception Bank, and other third parties.
In this case, the involved parties will have notes on every tax transaction and capable to check the tax agreement. However, the taxpayer’s information remains safe.
Furthermore, Rudiantara expects blockchain to be widely adopted, not only for the government but also corporates. For him, it’ll trigger the other sectors to join.
“However, the public isn’t really aware of the technology, it’s complicated for them. The most important thing is to highlight the benefit. I hope this technology can be adopted for other corporate stuff, whether it (OnlinePajak) succeed, others will too,” Rudiantara said.
The support also coming from the newborn ABI (Indonesia’s Blockchain Association). It has a proactive vision to boost the blockchain implementation that still growing.
Potential new taxpayers
Rudiantara also said the positive impact of blockchain in tax payment system. For example, to push the OTT (over-the-top) entrepreneur to pay taxes, including potential SMEs for new taxpayers.
“In Go-Jek, how many drivers? Sellers in Tokopedia? It’s also SME. They’re taxpayers, not the object. Blockchain becomes the solution for an easy process [to pay taxes],” he added.
Yustinus Prastowo, a tax observer said that blockchain is now become a solution to make the complicated tax system easier.
“The current challenge is tax ratio, many taxpayers but the cake’s small. We have 50 million potential taxpayers, only 30 million registered. There’s still 20 million potential taxpayers. Why is that? It is about trust,” Prastowo said.
He also added, blockchain implementation is expected to increase transparency to raise public’s trust with the current system. In other words, the government can get more taxpayers.
Original article is in Indonesian, translated by Kristin Siagian