Tax Refunds Take Effect Today: Review Purbaya's New Regulations
The government, through the Ministry of Finance, has announced the procedures for preliminary refunds of tax overpayments. This is outlined in Ministerial Regulation No. 28 of 2026. The regulation promises relief for the business world and taxpayers throughout Indonesia.
“To increase accuracy and provide greater legal certainty in the implementation of tax rights and obligations, adjustments are needed to the provisions regarding the procedures for preliminary refunds of tax overpayments,” states the regulation, quoted on Friday (1/5/2026).
As is known, Ministerial Regulation No. 39/PMK.03/2018 on Procedures for Preliminary Refunds of Tax Overpayments has been amended several times.
The most recent, Ministerial Regulation No. 119 of 2024 on the Third Amendment to Ministerial Regulation No. 39/PMK.03/2018 on Procedures for Preliminary Refunds of Tax Overpayments, is deemed insufficient to accommodate the needs for adjusting these procedures, hence the need for replacement.
This Ministerial Regulation will officially take effect on 1 May 2026.
The Director General of Taxation has issued a decision on preliminary tax overpayment refunds after examining refund applications from taxpayers meeting certain criteria, taxpayers fulfilling specific requirements, or low-risk VAT-registered entrepreneurs.
Through this policy, the government seeks to expedite liquidity flows for highly compliant taxpayers, allowing them to receive funds that are rightfully theirs through a more efficient process without undergoing lengthy and complex initial examinations.
The latest regulation includes three main categories eligible for preliminary tax refunds. The first category covers taxpayers with specific criteria known for their compliance reputation, such as always submitting tax notices on time and having no tax arrears.
Additionally, they must have financial statements audited by a public accountant with an unqualified opinion for three consecutive years and have not committed any tax crimes in the past five years.
The second category is for taxpayers meeting certain requirements based on limits for the amount of overpaid tax applied for.
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 VAT-registered entrepreneurs with the same overpayment amount. Meanwhile, for VAT-registered entrepreneurs submitting VAT tax notices with overpayments and sales value of Rp 4.2 billion, the maximum overpayment is Rp 1 billion for one tax period.