Tax Office Drafts New Rules on Tax Refund Procedures

Nganjuk, East Java - The Directorate General of Taxes (DJP) of the Ministry of Finance is finalising new regulations on the procedures for preliminary refunds of excess tax payments, or tax refunds. Director of Dissemination, Services, and Public Relations at DJP, Inge Diana Rismawantiya, explained that accelerated refunds will be prioritised for taxpayers with high compliance levels. The hope is that in the future, refund disbursements will be focused to be more targeted. “We are striving for those receiving accelerated refunds to truly be taxpayers with high compliance levels. The main point is to make it more targeted,” Inge stated during a media visit event in Nganjuk, East Java, on Thursday (16/4). She explained that the policy aims to increase the accuracy of distribution while maintaining the credibility of the taxation system. With these tax refund regulations, any excess tax payments will still be returned to taxpayers. According to her, refunds are a right of taxpayers that must be fulfilled, so DJP will not withhold funds that are indeed their right. “Regarding refund rights, we fully understand that refunds actually affect taxpayers’ rights. Of course, we will not keep them for ourselves if they are indeed the taxpayers’ right,” she said. However, DJP is striving to ensure that the refund process, particularly faster preliminary refunds, is only given to taxpayers with a good compliance track record. “Indeed, at this time we are trying to ensure that those receiving refunds with quick turnaround or the aforementioned preliminary refunds are truly taxpayers whose compliance levels are already proper,” she stated. Nevertheless, Inge has not detailed the provisions of the refund scheme and asked the public to wait for the issuance of the Minister of Finance Regulation (PMK), which will soon be enacted. “The main point is heading towards that, more targeted on who receives it. But don’t worry, they say (the PMK) will come out soon. So better to wait rather than me leaking what hasn’t been signed by the Minister,” she said.