Purbaya's Calculation: Tax Restitution This Year Could Swell to Rp480 Trillion

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa estimates that the value of preliminary refunds of overpaid tax under the restitution scheme paid this year will be higher than last year.

So far we have disbursed Rp160 trillion, compared to last year’s full-year Rp360 trillion. That’s for four months. If we multiply by three, it would be about Rp480 trillion.

Nevertheless, Purbaya emphasised that he will study those tax refunds more deeply to ensure there is no collusion. “I have often asked the Director General of the Directorate General of Taxes to review what those restitutions actually are. But it doesn’t stop; it continues,” he added.

Purbaya said he wants to ensure that tax refunds do not suffer leaks that could ultimately harm the state and that restitution proceeds in accordance with the rules.

As is known, in the latest regulations, there are three main categories that grant this preliminary tax refund. The first category covers taxpayers with certain criteria known as their compliance reputation, such as always timely in filing tax returns and having no tax arrears.

In addition, they must also have financial statements audited by a public accountant with an unqualified opinion for three consecutive years and have never engaged in tax crimes in the last five years.

Next, the second category is for taxpayers who meet certain requirements based on the threshold value of overpayment claimed.

For individual taxpayers who do not run a business, this facility can be granted directly, while for those who run a business or are self-employed, the limit is up to Rp100 million.

For corporate taxpayers, the opportunity is broad if their turnover reaches Rp50 billion with a maximum overpayment of Rp1 billion, which also applies to value-added tax (VAT) taxpayers with overpayments at the same nominal level.

Meanwhile, for VAT-registered entrepreneurs who submit a VAT overpayment notification with a declared overpayment amount of Rp4.2 billion, the maximum overpayment is Rp1 billion for a single tax period.

The third category extends a red carpet to low-risk VAT taxpayers spanning various strategic business entities. This group includes companies listed on the stock exchange, state-owned or regional-owned enterprises, and entrepreneurs designated as primary customs partners or certified economic operators.

In addition, manufacturers, large pharmaceutical traders, and distributors of medical equipment that meet certain technical requirements are also included in the list eligible for accelerated refunds in each tax period.

Moreover, the refund process is fully digital, with requests for taxpayers meeting certain criteria submitted via the DJP portal no later than January 10. The Directorate General of Taxes has only 30 working days to issue a decision. If the period is exceeded, the application is automatically deemed approved.

For the disbursement of income tax refunds (PPh), the restitution decision must be issued within a maximum of three months. For VAT (PPN), the maximum is one month from receipt of the application. The PMK states that if this deadline is missed without a decision, the application is also deemed granted.

Under this regulation, small-scale taxpayers, whether individuals or corporations with overpayments and certain turnover, can still apply for preliminary refunds without going through the lengthy process that existed previously.