Tax Restitutions

Tax Restitution is a return on overpayment made by a Taxpayer or a tax payment that should not be owed.

Based on Article 2 of the Regulation of the Minister of Finance of the Republic of Indonesia No. 39/PMK.03/2018, there are at least three types of taxpayers who get their rights to tax refunds, including:

Certain Criteria Taxpayers

Certain Criteria Taxpayers have several specific criteria determined by the DJP (Directorate of General Taxation) through Article 3 of the Regulation of the Minister of Finance of the Republic of Indonesia No. 39/PMK.03/2018,

• Timely in submitting SPT
• Do not have tax arrears for all types of taxes
• The financial statements were audited by a public accountant with an unqualified opinion for 3 consecutive years
• Never been sentenced for committing a crime in the field of taxation
• Taxpayers with Certain Requirements

Taxpayers with Certain Requirements are those who have the requirements as stated in Article 9 of the Regulation of the Minister of Finance of the Republic of Indonesia No. 39/PMK.03/2018,

1.Individual Taxpayers who do not run a business who submit Annual PPh Returns for overpayment of refunds

2.Individual taxpayers who run a business or freelance job who submit Annual PPh Returns for overpayment of refunds with a maximum amount of overpayment of Rp. 100,000,000.00 (one hundred million rupiahs)

3.Corporate Taxpayer submitting Annual PPh Return for overpayment of refunds with a maximum amount of overpayment of IDR 1,000,000,000.00 (one billion rupiah)

4.Taxable Entrepreneurs who submit SPT Period Value Added Tax overpayment of refunds with a maximum amount of overpayment of IDR 1,000,000,000.00 (one billion rupiah).

Low Risk Taxable Entrepreneurs

And finally, Low-Risk Taxable Entrepreneurs also get their rights to tax refunds with the following criteria:

• Companies whose shares are traded on the stock exchange
• Companies whose majority shares are owned directly by the central government and/or regional governments
• Taxable Entrepreneurs who have been designated as Main Customs Partners
• Taxable Entrepreneur who has been designated as an Authorized Economic Operator
• manufacturers or producers who have a place to carry out production activities

The three groups are entitled to a refund of prepayment of tax overpayment in the following manner:

• Fill in the preliminary return column on the SPT

• DJP will conduct research on this matter

• DJP will issue a decision in the form of an issuance or SKPPKP

• Period of time :

1. Three months for PPh and 1 month for VAT for Taxpayers of Certain Criteria
2. 15 days for OP PPh, 1 month for corporate PPh and VAT for taxpayers with certain conditions
3. One month after the application is received for Low Risk Taxable Entrepreneurs