Overpaid Annual Tax Returns Not Always Refundable: New DJP Rules

JAKARTA, KOMPAS.com - The status of overpayment in the Annual Tax Notification (SPT) is often understood as an excess tax deposit that can be requested back. However, the Directorate General of Taxes (DJP) emphasises that not all overpayments can be claimed for restitution. This provision is regulated in the Director General of Taxes Regulation Number PER-03/PJ/2026, which was enacted on 16 March 2026. Through this regulation, the DJP provides clarification regarding certain conditions that render the overpayment in the SPT not recognised as an excess tax payment. In practice, the overpayment status in the SPT does not necessarily reflect a real excess tax deposit. The DJP states that there are several technical or administrative factors that can cause the appearance of an overpayment figure. One condition regulated in the policy is the difference due to rounding in the tax administration system. “The overpayment value in the SPT submitted by the taxpayer is deemed not to constitute an excess tax payment if that value is caused by differences in tax calculation rounding in the DJP’s administrative system,” states the provision in Article 22 of the regulation, quoted on Friday (3/4/2026). Additionally, overpayments originating from the Government-Borne Income Tax (PPh DTP) scheme cannot be restituted. This is because the tax in that scheme is not paid directly by the taxpayer but is borne by the government. The DJP also highlights the prevalence of errors in SPT filling that trigger the overpayment status. For example, errors in reporting Article 21 Income Tax on employment income, up to discrepancies between tax credits and reported income. Another common error is mixing final tax credits into the calculation of non-final taxed income. Furthermore, there are taxpayers who include their spouse’s tax credits, even though this is not permitted in certain reporting schemes. Similar provisions apply to state apparatus, such as civil servants, TNI/Polri members, and state officials. If all income comes from the State Budget (APBN) or Regional Budget (APBD), and the overpayment difference arises due to discrepancies with official withholding evidence, then that excess cannot be claimed back. The DJP emphasises that SPTs meeting these criteria will not be processed further for restitution, either through examination or audit. “Requests for the return of excess tax payments as regulated in tax legislation cannot be submitted,” states the DJP in the regulation.