Digital innovation with COTS (Commercial Off the Shelf) Digital Tax Administration System
How Qualysoft sustains the Indonesian Directorate General of Taxes (DGT) to increase
revenue for sustainable development with a new, efficient, secure,
and transparent tax administration system.
Improving the performance of tax collection and the relationship between citizens and government through E-Taxation Software
Many developing countries, including Indonesia, face significant challenges in mobilizing domestic financial resources for sustainable development. Despite consistent economic growth, they struggle to raise enough tax revenue to fund public services and investments in infrastructure, education, and healthcare.
To address this, the Indonesian government is implementing a range of measures in reforming its fiscal policy including expanding the tax base, enhancing the efficiency of tax collection, and improving the quality of government spending.
The fiscal administrative system dates back to 2014 and needs to be upgraded with the latest technology. By improving the design, payments should be effortless for everyone, secure, transparent, and transposed in the improved overall tax revenue collection.
Qualysoft teamed up with LG CNS© as strategic partners to provide a sophisticated large-scale tax administration application in only 3 years.
Qualysoft is providing the software development while LG CNS© is providing the hardware infrastructure and quality assurance people for this project.
The integrated tax administration system consists of:
A. A core tax administration system;
B. A web portal for taxpayers
Indonesia will benefit from an improved IT tax administration system that will significantly increase the efficiency of tax collection.
On one hand, the new e-tax software encourages voluntary tax compliance by simplifying taxpayer service and compliance. It allows taxpayers to file, report, and pay various taxes, including value-added tax (VAT) and income taxes, easily from home or work through the Internet. Citizens even receive electronic notices and tax-related documents online.
On the other hand, the tax administration efficiency improved, and, at the same time, the costs and administrative burden is reduced. Operations are carried out in a flexible, secure, and paperless approach through online portals, significantly reducing the cost of administration. The processing time for both companies and citizens is also lowered.
The overall benefits, for both citizens and the government, are: