Introduction

The Directorate General of Taxes (DGT) of the Ministry of Finance is preparing to implement a cooperative compliance scheme that will apply to large companies starting in 2026. This policy marks a new era in the relationship between tax authorities and the business world, moving from mere supervision to a strategic partnership based on trust, transparency, and good governance.

For many large companies, this transformation is not simply an administrative change, but also a fundamental adjustment in tax governance and compliance strategies. In this context, Great Performance Consulting, a national strategic business and tax consulting firm, believes the cooperative compliance scheme could be a crucial opportunity to strengthen the foundation of corporate compliance and fiscal efficiency in Indonesia.

What is Cooperative Compliance?

The concept of cooperative compliance stems from best practices already implemented in various developed countries such as the Netherlands, Australia, and the United Kingdom. The core of this approach is collaboration between tax authorities and large taxpayers through information transparency, an internal tax control system (Tax Control Framework), and a risk-based oversight approach.

With this system, oversight is no longer limited to year-end audits and disputes, but rather ongoing and data-driven. This means tax authorities can assess a company’s compliance risk in real time, while companies gain greater fiscal certainty and a better reputation for compliance.

According to the explanation of the Minister of Finance’s Expert Staff for Tax Regulations and Law Enforcement, Iwan Djuniardi, cooperative compliance aims to “build trust and transparency between the government and large taxpayers, so that supervision can be carried out through an automated and accountable system.”

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Reasons and Objectives for Implementing This Scheme

The government is targeting two major objectives from implementing the cooperative compliance scheme:

1. Tax oversight efficiency, the DGT can focus on taxpayers with high risk levels, while compliant companies can enjoy reduced audit intensity.
2. Legal and fiscal certainty, companies can obtain certainty regarding strategic tax positions from the outset, thereby reducing the potential for disputes in the future.

Furthermore, this policy is expected to support the DGT’s ongoing digital transformation. Through the integration of information systems and data analysis, the DGT can conduct faster and more accurate oversight, without always having to rely on field inspections.

Impact on Large Companies

The implementation of cooperative compliance presents both opportunities and challenges for large companies. On the one hand, they have the opportunity to gain fiscal certainty and a higher reputation for compliance. On the other hand, they must be prepared to open up data, improve internal governance, and ensure the entire tax reporting process is transparent and accountable.

According to Great Performance Consulting’s analysis, there are at least three main implications for large companies:

1. The need for improved tax governance.
   Companies must have a well-documented internal tax control system, from planning and reporting to documenting cross-entity transactions.
2. Digitizing data and reporting processes.
   Because oversight will be system-based, companies need to ensure their ERP or financial systems are capable of producing accurate reports that are integrated with the DGT’s requirements.
3. Measured tax risk management.
   Companies need to identify high-risk areas, such as transfer pricing, cross-border VAT, and withholding tax, so they can be managed proactively.

“Companies can no longer simply be reactive in the face of tax audits. With cooperative compliance, they need to be open, systematic, and ready to be audited at any time,” explained the Managing Partner of Great Performance Consulting in a written statement.

Preparations That the Business World Must Make

To be ready to participate in this new scheme in 2026, companies need to take strategic steps now. Based on guidance from various international institutions and ongoing adaptations by the Directorate General of Taxes (DGT), Great Performance Consulting recommends five key steps:

1. Conduct a Tax Readiness Assessment.
   A comprehensive tax readiness audit to assess whether reporting systems, documentation, and internal policies meet cooperative compliance standards.
2. Develop a Tax Control Framework (TCF).
   Establish a tax control structure that encompasses policies, processes, documentation, and a mechanism for reporting tax risks to top management.
3. Improving the Competence of Tax and Finance Teams.
   Through intensive training and audit simulations, companies can strengthen their internal capabilities in responding to data requests or clarifications from tax authorities.
4. Digitization and integration of financial data.
   ERP and accounting systems must be able to display automated, real-time reports for easy verification by the DGT.
5. Establish proactive communication with tax authorities.
   Cooperative compliance emphasizes open dialogue. Companies that actively communicate and honestly report risks are more likely to be trusted.

The Strategic Role of Great Performance Consulting

As a tax and business consulting firm experienced in assisting large corporate clients, Great Performance Consulting is ideally positioned to assist businesses during this transition. Services offered include:

• Assistance in designing the Tax Control Framework (TCF).
  Great Performance Consulting’s team of experts assists clients in preparing policy documents, internal procedures, and tax risk reporting flows in accordance with DGT standards.
• Tax compliance assessment and internal audit.
  A comprehensive evaluation of the company’s tax reporting and governance systems to ensure full compliance by 2026.
• Data system integration and reporting digitization.
  Helping companies adapt ERP systems to align with the needs of DGT-based oversight systems.
• Cooperative compliance simulation and executive training.
  Preparing tax, finance, and legal teams to navigate the mechanisms of cooperation with tax authorities, while building a culture of internal transparency.
• Assistance with communications and negotiations with authorities.
  Great Performance Consulting also acts as a strategic partner, bridging dialogue between companies and the DGT to ensure constructive communication.

Closing

The implementation of cooperative compliance by the Directorate General of Taxes (DGT) starting in 2026 is not merely a technical reform, but rather a transformation of the compliance culture in the business world. Companies that adapt to the principles of transparency and sound tax control will reap numerous benefits: legal certainty, cost efficiency, and trust from regulators.

However, to achieve this, companies need a partner who understands the complexities of taxation and business holistically. Great Performance Consulting offers an integrated solution that not only helps you meet your tax obligations but also builds a compliance foundation that strengthens your company’s performance in the new era of fiscal oversight.