Purbaya Accelerates Tax Refunds: Here Are the New Requirements and Rules!

The government, through the Ministry of Finance (Kemenkeu), has announced the procedures for preliminary refunds of tax overpayments, or restitusi. This is outlined in Ministerial Regulation No. 28 of 2026. Under this regulation, the preliminary refund scheme has been made faster, accompanied by screening based on taxpayer compliance. This PMK officially came into effect on 1 May 2026. Through this policy, the government aims to accelerate liquidity flows for highly compliant taxpayers, allowing them to receive funds that are rightfully theirs through a more efficient process without lengthy and complex initial examinations. The latest regulation includes three main categories eligible for these preliminary tax refunds. The first category covers taxpayers with certain criteria known for their compliance reputation, such as always submitting notifications on time and having no tax arrears. Additionally, they must have financial statements audited by public accountants with an unqualified opinion for three consecutive years and have not committed any criminal acts in taxation for the past five years. The second category is for taxpayers meeting specific requirements based on limits for the overpayment amount submitted. For individual taxpayers not engaged in business, this facility can be granted directly, while for those engaged in business or free professions, the limit is a maximum of Rp 100 million. For corporate taxpayers, the opportunity is open if their business turnover reaches Rp 50 billion with a maximum overpayment of Rp 1 billion, which also applies to taxable entrepreneurs with the same overpayment amount. Meanwhile, for taxable entrepreneurs submitting VAT monthly notifications with overpayments and sales of Rp 4.2 billion, the overpayment is a maximum of Rp 1 billion for one tax period. The third category rolls out the red carpet for low-risk taxable entrepreneurs, including various strategic business entities. This group includes companies whose shares are listed on the stock exchange, state-owned or regional enterprises, as well as entrepreneurs designated as principal customs partners or certified economic operators. Additionally, manufacturing entrepreneurs, wholesale pharmaceutical traders, and distributors of medical devices meeting certain technical requirements are also included in the list eligible for accelerated tax refunds for every tax period. The refund application process is fully digital, with requests for taxpayer status under certain criteria submitted via the DJP portal no later than 10 January. The Directorate General of Taxes is given only 30 working days to issue a decision. If exceeded, the application is automatically deemed accepted. For income tax (PPh) refunds, the decision is issued within a maximum of three months. For VAT (PPN), it is a maximum of one month from receipt of the application. This PMK stipulates that if these deadlines are missed without a decision, the application is also deemed approved. Under this regulation, small-scale taxpayers, both individuals and corporations with certain overpayment and turnover values, can still apply for preliminary refunds without undergoing lengthy processes as before.