Exploring the Initial Implementation of Coretax for MSMEs through a Phenomenological Lens

This study employs a qualitative approach using phenomenological methods to explore the initial experiences of Micro, Small, and Medium Enterprises (MSMEs) and Tax Account Representatives (ARs) in implementing the Coretax system. MSMEs are a strategic sector in Indonesia, contributing over 60% to the national GDP and employing 97% of the workforce. As part of tax administration modernization, Coretax aims to enhance efficiency, transparency, and tax compliance. However, its early implementation has faced several challenges, including technical issues and ineffective socialization efforts. In-depth interviews with two MSME owners and two ARs revealed six key findings. First, an educational background in accounting does not guarantee adequate understanding of evolving tax regulations. Second, initial knowledge of Coretax among taxpayers remains limited. Third, socialization efforts tend to be one-way and are hampered by outdated taxpayer contact data. Fourth, despite the Directorate General of Taxes (DGT) preparing the system internally for 2–3 years, field implementation still encountered many unforeseen obstacles. Fifth, negative early user experiences have left lasting impressions, despite subsequent system improvements. Lastly, ARs’ use of Coretax remains limited due to incomplete system integration. The study concludes that Coretax’s success is strongly influenced by users’ cognitive, emotional, and social readiness, as well as the quality of interaction with the system. Recommendations include two-way communication in socialization efforts, improved digital literacy, regular taxpayer data updates, and continuous system evaluation based on user feedback.