Central Purbaya Prepares New Tax Refund Regulations, Process Accelerated to Maximum 3 Months

The government is preparing new regulations regarding the refund of excess tax payments (restitusi) aimed at being faster and providing certainty for taxpayers. The regulation will be outlined in the Draft Minister of Finance Regulation (RPMK) on the procedures for preliminary refunds of excess tax payments, which is currently being finalised. “This draft regulation also includes provisions on the timeframe for settling applications, namely a maximum of three months for Income Tax and one month for Value-Added Tax since the application is received,” quoted from the DJPP Ministry of Law website, Tuesday (14/4/2026). In the draft, the government sets a deadline for settling refund applications of a maximum of three months for Income Tax (PPh) and one month for Value-Added Tax (PPN) since the application is received. This provision is expected to accelerate tax services while providing time certainty for taxpayers in obtaining their rights. Although accelerated, the refund process remains based on research by tax authorities. The research results serve as the basis for the Director General of Taxation in determining whether the application can be approved or rejected. If formal requirements are met and there is an excess tax payment, the Director General of Taxation may issue a Preliminary Excess Tax Refund Decision Letter. As part of the regulatory update, this regulation will also revoke several previous provisions related to preliminary refunds of excess tax payments. The government targets the RPMK to take effect on 1 May 2026, with the hope of improving the quality of tax services and providing legal certainty for the public.