DGT Trims Preliminary Restitution Process to 15 Days

JAKARTA. The Directorate General of Taxes (DGT) has accelerated the process of returning excess tax or restitution from a maximum of 12 months to only 15 days.
This facility is valid for a maximum refund value of IDR 100 million.

According to DGT, the ease and acceleration of restitution is given to provide relaxation for individual taxpayers who need the availability of funds, aka cash flow.

This policy is contained in the Regulation of the Director General of Taxes Number PER-5/PJ/2023 concerning the Acceleration of Refunds of Tax Payments which came into effect on 9 May 2023.

Certain taxpayers

The DGT in its written statement said that this facility only applies to certain individual taxpayers who meet the requirements. The conditions referred to are as stipulated in Articles 17B and 17D of the Law (UU) on General Provisions and Tax Procedures (KUP).

However, DGT reminded, if there are individual taxpayers who are later proven not to meet the requirements, they will be subject to administrative sanctions. The sanction will be given in the form of a fine of 15% plus a reference interest rate per month, for a maximum period of 12 months. This refers to Article 13 paragraph (2) of the KUP Law.

With this regulation, requests for restitution that have been submitted until May 31, which are still being examined but have not yet been issued the
Notification of Tax Audit Result (SPHP), must be terminated. However, if the SPHP has been issued, then the audit can be continued. (ASP/KEN)