Jakarta, CNBC Indonesia - The government plans to implement the\nlatest tax restitution regulations. The stricter policy on tax\noverpayment refunds for businesses is scheduled to take effect on 1 May\n2026.<\/p>\n
The draft regulation includes provisions on the timeframe for\nprocessing applications, namely a maximum of three months for Income Tax\nand one month for Value Added Tax since the application is received.<\/p>\n
Tax consultant from Botax Consulting Indonesia, Raden Agus Suparman,\nassesses that if the government sets a very short restitution period\nwithout changing the internal business processes at the Directorate\nGeneral of Taxes (DJP), the target of reducing restitution leaks will be\ndifficult to achieve.<\/p>\n
This is because tax restitution has so far proceeded through two\nchannels. First, through preliminary refunds based on administrative\nreview. Second, through tax audits that take longer.<\/p>\n
According to him, the preliminary refund channel can indeed be\ncompleted in a short time by regulation. However, in practice, there are\nmany internal stages before the funds actually enter the taxpayer\u2019s\naccount.<\/p>\n
\u201cThe one-month period is for the review procedure. Before the review,\nthere is the procedure for issuing the Official Note (ND) until the\nreview assignment is issued. After the SKPKPP is issued, there is also\nan administrative procedure between the KPP and KPPN. The timeframe can\nbe two or three months,\u201d Raden told CNBC Indonesia on Wednesday\n(15\/4\/2026).<\/p>\n
\u201cIf the audit procedure is carried out, it will take even longer. The\ninternal DJP process until the SP2 is issued often takes time,\u201d he\nsaid.<\/p>\n
Not only that, accelerating restitution does not automatically close\ntax leak gaps. In fact, if done without risk mapping, it could\npotentially loosen supervision.<\/p>\n
He suggests that the DJP rely on the Compliance Risk Management (CRM)\nsystem to sort taxpayers based on compliance levels. Low-risk taxpayers\ncan receive fast restitution, while those with a red report card must be\nexamined more thoroughly.<\/p>\n
\u201cAccelerated restitution can only be given to taxpayers who,\naccording to the CRM audit machine, have a compliant taxpayer label.\nEven if necessary, restitution is given directly to taxpayers who have\nno CRM red flags and no indications of non-compliance,\u201d he said.<\/p>\n
\u201cOn the other hand, for taxpayers with high-risk CRM audit\nindications, a comprehensive examination must be carried out, all taxes\nand complete examination. Thus, the examination period could reach six\nmonths,\u201d he added.<\/p>\n
Tax observer from the Center for Indonesia Taxation Analysis (CITA),\nFajry Akbar, said the main issue currently is not acceleration, but\nconcerns that the restitution process will be slowed down or\ncomplicated.<\/p>\n
If that happens, the impact could spread to production, goods prices,\nand national economic growth.<\/p>\n
\u201cCompany liquidity is disrupted, the production process will be\ndisrupted, company output will be disrupted, and aggregately it will\ndisrupt economic growth,\u201d Fajry told CNBC Indonesia on Wednesday\n(15\/4\/2026).<\/p>\n
\u201cOr, companies will raise prices to get instant cash flow. This\nhappens in the field, especially if the non-direct VAT tax restitution\nprocess is delayed. Consumers have to bear the increase,\u201d he said.<\/p>\n
Fajry highlighted that tax restitution issues are often complained\nabout by foreign investors. According to him, the slowness of tax refund\nprocessing makes Indonesia less competitive compared to neighbouring\ncountries like Vietnam.<\/p>\n
He explained that in Vietnam, the preliminary restitution scheme with\nthe concept of refund first, audit later for VAT can be completed in\njust six days. Meanwhile, general restitution is processed in about 40\ndays.<\/p>\n
\u201cNo wonder investors choose to invest in Vietnam. So, tax issues are\nlargely not related to rates but other things that make us less\ncompetitive compared to Vietnam and others,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/purbaya-to-revise-restitution-rules-effective-in-preventing-state-leaks-1776239455", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }