Tax Refund Soars 52.8% YoY as of August
Asep Munazat
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Tuesday, 01 October 2024
JAKARTA. The amount of refunds of tax overpayments or restitution until the end of August 2024 surged by 52.8% to IDR 216.85 trillion compared to the same period in 2023 or year on year (YoY).
Citing Kontan.co.id, by tax type, the highest growth in restitution was recorded in Corporate Income Tax (CIT), which increased by 102.9%. This was followed by Domestic Value Added Tax (VAT), which grew by 43.9%, and Other Taxes, which rose by 7.3%.
Director General of Taxes Suryo Utomo stated that sectorally, the largest recipients of the restitution came from the manufacturing sector, trade sector and mining sector. Thus, this restitution payment reduces the net amount of tax collected.
Restitution Reduces Net Tax Revenue
This is considered the main factor behind the 4.04% YoY contraction in tax revenue from January to August, amounting to only IDR 1,196.54 trillion. Consequently, tax revenue by the end of August reached just 60.16% of the 2024 State Budget target.
As of 31 August 2024, tax revenue details include non-oil and gas income tax at IDR 665.52 trillion, oil and gas income tax at IDR 44.45 trillion, Value-Added Tax (VAT), and Sales Tax on Luxury Goods (STLG) at IDR 470.81 trillion, along with land and building tax (L&B tax) and other taxes at IDR 15.76 trillion.
Procedures for Submitting VAT Restitution
An application for restitution can be submitted by VAT-Registered Persons every tax period, as long as it fulfills the criteria set out in Article 9 paragraph (4b) of the VAT Law. However, if it does not meet the requirements, the VAT-registered persons can submit a restitution application to the registered tax office at the end of the fiscal year.
The tax office will follow up the application for restitution with a research or examination process depending on the criteria of the VAT-registered person who submits the application.
The application for restitution can be made through the e-Faktur program, by selecting the ‘Returned (Restitution)’ column in section H of form 1111 of the main VAT periodic return. (ASP/KEN)
