Tax Refund Tightened, DGT Evaluates Low-Risk Taxpayers

JAKARTA - The Directorate General of Taxes (DGT) is reorganising the criteria for taxpayers eligible for accelerated refunds of overpaid taxes, or preliminary refunds. Director General of Taxes Bimo Wijayanto stated that the government is currently harmonising the Draft Ministerial Regulation on Finance (RPMK) to adjust refund policies to the latest economic conditions. “We are currently examining whether the current economic situation still warrants relaxation on preliminary refunds. What we are doing is reorganising the criteria for low-risk taxpayers, certain taxpayers, and compliant taxpayers who can be granted preliminary refunds,” Bimo said during a press conference at the Central Jakarta Medium Tax Office on Thursday (30/4/2026). However, the evaluation is being conducted due to instances of misuse of the facility in practice. “In its development, the preliminary refund facility has been widely utilised by taxpayers who were subsequently audited by us, and upon quality audits, some were included in preliminary evidence and investigations. So there is indeed moral hazard there,” he said. Bimo explained that the DGT often finds problematic taxpayers during examinations of accelerated refund applications. Nevertheless, Bimo assured that tightening the criteria is not intended to reduce taxpayers’ rights, but rather to ensure refunds are targeted appropriately to those who meet the requirements. “So it’s not to reduce rights; it’s just that if they don’t meet the criteria, we will examine them. That’s the usual process to make it better,” he said. The new rules on accelerated refunds are planned to take effect from 1 May 2026. The DGT stated that this policy adjustment is part of efforts to improve taxpayer compliance while maintaining accountability in the tax refund process.