Empowering MSMEs in Tax Digitalization: Outreach and Hands-on Assistance for Individual Tax Reporting via the Coretax System

Abstract

This community engagement project aims to enhance tax compliance and digital literacy among Micro, Small, and Medium Enterprises (MSMEs) regarding annual individual income tax return (SPT Tahunan) reporting using the newly implemented Coretax Administration System in Indonesia. The transition to digital tax administration presents challenges for MSME actors due to limited digital skills, unfamiliarity with the Coretax platform, and improper financial record-keeping. To address these barriers, an integrative action-oriented program combining educational outreach, interactive discussions, live system demonstrations, and personalized hands-on assistance was conducted in Bogor, West Java. The results demonstrate that direct step-by-step mentoring significantly improved participants' understanding of tax regulations, system navigation, and accurate data entry. Furthermore, the individual assistance model successfully mitigated technical obstacles—such as credential recovery and validation errors—enabling MSME owners to independently complete their electronic tax filings. Overall, this initiative fosters a culture of voluntary tax compliance and highlights the crucial role of academic-led community assistance in supporting the digital transformation of national tax administration.