On 24 August 2026, KP2KP Sengkang concluded a comprehensive tax data reconciliation project covering 60 village governments (Pemerintah Desa) across Wajo Regency, South Sulawesi. The initiative addressed systemic gaps in Village Fund (Dana Desa) tax reporting, where village treasurers historically lacked capacity to withhold and remit Article 23/26 Income Tax on vendor payments. Under Law No. 6/2014 on Villages and PMK-223/2020 on Village Financial Management, villages are designated as withholding agents but operated without DJP oversight. The reconciliation corrected 1,240 transaction records, identified Rp840 million in unremitted tax, and established a monthly reporting template integrated with the Coretax system for ongoing compliance.
Key Takeaways
- Grassroots Withholding Compliance: The project brought 60 previously non-compliant village governments into the formal withholding system, expanding the tax base to Indonesia’s 74,000+ villages.
- Coretax Integration at Village Level: A simplified Coretax interface was deployed for village treasurers, enabling digital SPT Masa filing without requiring accounting expertise or internet connectivity beyond basic mobile access.
- Revenue Recovery Precedent: The Rp840M recovery from one regency implies a national potential of Rp1.2 trillion annually if replicated across all regencies, representing a material untapped revenue source.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement